Question
By "another one of those" moments, Dalio refers to events in financial markets that have happened many times in the past and will likely happen again. These events may seem unique or unprecedented to those experiencing them for the first time, but they are part of recurring patterns in financial markets. Understanding these patterns allows investors to better predict and respond to market changes.
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Once, following an international currency devaluation, Dalio expected the stock market to plummet, and he took what he thought was an appropriate position. Instead, the stock market jumped significantly, causing him to nearly go bankrupt. To prevent such a mistake happening again, he set out to identify the principles he needed to put in place and studied past currency devaluations from the beginning of time to the present to see what lessons he could learn. He learned that what had just taken place had happened before many times in the past. Dalio calls these moments in history "another one of those" moments, meaning that most everything has happened many times before and will surely happen again. Perhaps the last time an event occurred was before our lifetime, despite it being the first time we have experienced it. Most events we experience have already happened multiple times in the past. As a consequence, if our human psychology has not changed in the last thousand years, then by s...
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