“I know that the key to my success has not been so much what I know as much as how I deal with my not knowing,” writes Ray Dalio in his recently published book “Principles: Life and Work.” Ray Dalio is perhaps the most successful hedge fund manager in history. He built Bridgewater Associates from the ground up to later become the largest hedge fund in the world. A year ago, he and Bridgewater had 150 billion dollars in assets under management (AUM) and employed over 1,700 workers. Dalio

In 2007, value investor David Einhorn wrote a fascinating book titled “Fooling Some of the People All of the Time: A Long, Short Story”, which is about how companies over the course of the business cycle begin using accounting tricks and the indifference of stock investors as long as stock prices are rising. This “accounting cycle” is intimately connected to the business cycle. In boom times, businesses can easily get away with creative (though, in many cases, perfectly legal)

The euro has been strong recently. The EUR/USD rate shot up to a two-year high, to a level of 1.21. But not only the euro has been “strong” against the dollar. Better said, the recent euro strength can for the most part be explained by recent dollar weakness. The gold price in dollars went up as a result, even exceeding $1300 per troy ounce, but gold prices for investors in the Eurozone have remained mostly flat. Where is the EURUSD heading next?