--- title: "Meaning & Key Takeaway of: Because I believed that the choice was…" description: "\"“Because I believed that the choice was between accelerating inflation and deflationary depression, I was holding both gold (which performs well in acc..." image: "https://sms4smile.com/quotes/i/e83/ray-dalio-299_opposite-direction_because-i-believed-that-the-choice-was-b_1142024.jpg" --- # Because I believed that the choice was between… ![“Because I believed that the choice was between accelerating inflation and deflationary depression, I was holding both gold (which performs well in accelerating inflation) and bonds (which perform well in deflationary depressions). Up until that point, gold and bonds had moved in opposite…” quote by Ray Dalio](https://sms4smile.com/quotes/i/e83/ray-dalio-299_opposite-direction_because-i-believed-that-the-choice-was-b_1142024.jpg) [Download](https://sms4smile.com/quotes/i/e83/ray-dalio-299_opposite-direction_because-i-believed-that-the-choice-was-b_1142024.jpg) [Open image](https://sms4smile.com/quotes/i/e83/ray-dalio-299_opposite-direction_because-i-believed-that-the-choice-was-b_1142024.jpg) > ““Because I believed that the choice was between accelerating inflation and deflationary depression, I was holding both gold (which performs well in accelerating inflation) and bonds (which perform well in deflationary depressions). Up until that point, gold and bonds had moved in opposite directions, depending on whether inflation expectations rose or fell. Holding those positions seemed much safer than holding alternatives like cash, which would lose value in an inflation environment, or stocks, which would crash in a depression”” [Ray Dalio](https://sms4smile.com/quotes/author/ray-dalio/) ## About This Quote This interpretation was drafted with AI assistance. It is one reading of the quote, not the author's own explanation. Diversifying across assets that thrive in opposite economic scenarios can protect wealth from inflation or deflation risks. **In simple terms:** Balance assets to hedge economic extremes. Key Takeaway Diversify to reduce risk. Themes risk management investment strategy economic cycles Mood cautious analytical Type financial strategic When to use this quote - retirement planning - wealth preservation - inflation hedging - deflationary downturns Key Concepts inflation deflation asset allocation portfolio diversification Questions to Reflect On - What economic indicators would trigger shifting between gold and bonds? - How do you balance liquidity needs with long‑term hedges? A Different Perspective Diversification may limit upside in stable markets. ★ ★ ★ ★ ★ No ratings yet [Depending Inflation](https://sms4smile.com/quotes/about/depending-inflation-3188642/) [Gold Bonds](https://sms4smile.com/quotes/about/gold-bonds-3188643/) [Inflation Bonds](https://sms4smile.com/quotes/about/inflation-bonds-3188640/) [Inflation Deflationary](https://sms4smile.com/quotes/about/inflation-deflationary-3188641/) [Inflation Environment](https://sms4smile.com/quotes/about/inflation-environment-3188644/) [Opposite direction](https://sms4smile.com/quotes/about/opposite-direction/) ## Related quotes > [One day we will have more inflation, and our bonds will bleed like a pig. 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Smith](https://sms4smile.com/quotes/author/jennifer-e-smith/) > [“I’m so ashamed of myself for wanting this. His brand of sex comes with a warning label. That should make me want to run…](https://sms4smile.com/quotes/belle-aurora/i-m-so-ashamed-of-myself-for-wanting-this-his-brand-of-sex-comes-with/) [Belle Aurora](https://sms4smile.com/quotes/author/belle-aurora/) > [Before a person start to walk the Straight & Narrow Path, they have to make some changes within them self, like turning away from…](https://sms4smile.com/quotes/glen-rambharack/before-a-person-start-to-walk-the-straight-narrow-path-they-have-to/) [Glen Rambharack](https://sms4smile.com/quotes/author/glen-rambharack/) > [The kids kept walking, moving through the Henley's halls like a tide, but when Kat turned to leave, she walked in the opposite directions.…](https://sms4smile.com/quotes/ally-carter/the-kids-kept-walking-moving-through-the-henley-s-halls-like-a-tide/) [Ally Carter](https://sms4smile.com/quotes/author/ally-carter/) > [“The decision to create a book trailer is entirely up to you. I can remember when "video killed the radio star" on MTV and…](https://sms4smile.com/quotes/kytka-hilmar-jezek/the-decision-to-create-a-book-trailer-is-entirely-up-to-you-i-can/) [Kytka Hilmar-Jezek](https://sms4smile.com/quotes/author/kytka-hilmar-jezek/) > [For many years, I used to run to the opposite direction when I saw photographers.](https://sms4smile.com/quotes/zeenat-aman/for-many-years-i-used-to-run-to-the-opposite-direction-when-i-saw/) [Zeenat Aman](https://sms4smile.com/quotes/author/zeenat-aman/) > [“When people tell you that this venerable firm or private investor invested X millions of dollars in that entity and that it is a…](https://sms4smile.com/quotes/ziad-k-abdelnour/when-people-tell-you-that-this-venerable-firm-or-private-investor/) [Ziad K. Abdelnour](https://sms4smile.com/quotes/author/ziad-k-abdelnour/) > [Upon my arrival in the United States the religious aspect of the country was the first thing that struck my attention; and the longer…](https://sms4smile.com/quotes/alexis-de-tocqueville/upon-my-arrival-in-the-united-states-the-religious-aspect-of-the/) [Alexis de Tocqueville](https://sms4smile.com/quotes/author/alexis-de-tocqueville/) > [Every time I hear a revenge story, I run the opposite direction. I just don't think such stories have any novelty value.](https://sms4smile.com/quotes/suniel-shetty/every-time-i-hear-a-revenge-story-i-run-the-opposite-direction-i-just/) [Suniel Shetty](https://sms4smile.com/quotes/author/suniel-shetty/) > [“Too often, the notion of progress is used as a code word for perfection, the chain of being in a different guise. The term…](https://sms4smile.com/quotes/steve-jones/too-often-the-notion-of-progress-is-used-as-a-code-word-for/) [Steve Jones](https://sms4smile.com/quotes/author/steve-jones/) > [“I don’t mean to interrupt your gossip free-for-all, but do you know if there’s a non-GMO or organic section in this grocery store? This…](https://sms4smile.com/quotes/meghan-march/i-don-t-mean-to-interrupt-your-gossip-free-for-all-but-do-you-know-if/) [Meghan March](https://sms4smile.com/quotes/author/meghan-march/) > [We began intercepting Japanese radio transmissions, which indicated the two forces were very close to each other. We found out later that we were…](https://sms4smile.com/quotes/jack-adams/we-began-intercepting-japanese-radio-transmissions-which-indicated/) [Jack Adams](https://sms4smile.com/quotes/author/jack-adams/) ## More by Ray Dalio > [“Slow down your thinking so you can note the criteria you are using to make your decision. 2. Write the criteria down as a principle.…](https://sms4smile.com/quotes/ray-dalio/slow-down-your-thinking-so-you-can-note-the-criteria-you-are-using-to/) [Ray Dalio](https://sms4smile.com/quotes/author/ray-dalio/) > [“Having a process that ensures problems are brought to the surface, and their root causes diagnosed, assures that continual improvements occur.”](https://sms4smile.com/quotes/ray-dalio/having-a-process-that-ensures-problems-are-brought-to-the-surface-and/) [Ray Dalio](https://sms4smile.com/quotes/author/ray-dalio/) > [“If you can’t successfully do something, don’t think you can tell others how it should be done”](https://sms4smile.com/quotes/ray-dalio/if-you-can-t-successfully-do-something-don-t-think-you-can-tell/) [Ray Dalio](https://sms4smile.com/quotes/author/ray-dalio/) > [“Remember that a good plan should resemble a movie script.”](https://sms4smile.com/quotes/ray-dalio/remember-that-a-good-plan-should-resemble-a-movie-script/) [Ray Dalio](https://sms4smile.com/quotes/author/ray-dalio/) > [“I believe that the key to success lies in knowing how to both strive for a lot and fail well. 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You get better…](https://sms4smile.com/quotes/ray-dalio/life-is-like-a-game-where-you-seek-to-overcome-the-obstacles-that/) [Ray Dalio](https://sms4smile.com/quotes/author/ray-dalio/) > [“when we look down on ourselves through the eyes of nature we are of absolutely no significance. It is a reality that each one…](https://sms4smile.com/quotes/ray-dalio/when-we-look-down-on-ourselves-through-the-eyes-of-nature-we-are-of/) [Ray Dalio](https://sms4smile.com/quotes/author/ray-dalio/) > [“Great questions are a much better indicator of future success than great answers.”](https://sms4smile.com/quotes/ray-dalio/great-questions-are-a-much-better-indicator-of-future-success-than/) [Ray Dalio](https://sms4smile.com/quotes/author/ray-dalio/) > [“Georgi Plekhanov’s classic On the Role of the Individual in History.”](https://sms4smile.com/quotes/ray-dalio/georgi-plekhanov-s-classic-on-the-role-of-the-individual-in-history/) [Ray Dalio](https://sms4smile.com/quotes/author/ray-dalio/) [Explore all 716 Ray Dalio quotes ](https://sms4smile.com/quotes/author/ray-dalio/) ## More Opposite direction quotes > [We began intercepting Japanese radio transmissions, which indicated the two forces were very close to each other. 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I just don't think such stories have any novelty value.](https://sms4smile.com/quotes/suniel-shetty/every-time-i-hear-a-revenge-story-i-run-the-opposite-direction-i-just/) [Suniel Shetty](https://sms4smile.com/quotes/author/suniel-shetty/) > [Upon my arrival in the United States the religious aspect of the country was the first thing that struck my attention; and the longer…](https://sms4smile.com/quotes/alexis-de-tocqueville/upon-my-arrival-in-the-united-states-the-religious-aspect-of-the/) [Alexis de Tocqueville](https://sms4smile.com/quotes/author/alexis-de-tocqueville/) > [“When people tell you that this venerable firm or private investor invested X millions of dollars in that entity and that it is a…](https://sms4smile.com/quotes/ziad-k-abdelnour/when-people-tell-you-that-this-venerable-firm-or-private-investor/) [Ziad K. Abdelnour](https://sms4smile.com/quotes/author/ziad-k-abdelnour/) > [For many years, I used to run to the opposite direction when I saw photographers.](https://sms4smile.com/quotes/zeenat-aman/for-many-years-i-used-to-run-to-the-opposite-direction-when-i-saw/) [Zeenat Aman](https://sms4smile.com/quotes/author/zeenat-aman/) > [“The decision to create a book trailer is entirely up to you. I can remember when "video killed the radio star" on MTV and…](https://sms4smile.com/quotes/kytka-hilmar-jezek/the-decision-to-create-a-book-trailer-is-entirely-up-to-you-i-can/) [Kytka Hilmar-Jezek](https://sms4smile.com/quotes/author/kytka-hilmar-jezek/) > [The kids kept walking, moving through the Henley's halls like a tide, but when Kat turned to leave, she walked in the opposite directions.…](https://sms4smile.com/quotes/ally-carter/the-kids-kept-walking-moving-through-the-henley-s-halls-like-a-tide/) [Ally Carter](https://sms4smile.com/quotes/author/ally-carter/) > [Before a person start to walk the Straight & Narrow Path, they have to make some changes within them self, like turning away from…](https://sms4smile.com/quotes/glen-rambharack/before-a-person-start-to-walk-the-straight-narrow-path-they-have-to/) [Glen Rambharack](https://sms4smile.com/quotes/author/glen-rambharack/) > [“I’m so ashamed of myself for wanting this. His brand of sex comes with a warning label. 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Smith](https://sms4smile.com/quotes/author/jennifer-e-smith/) > [“If you board the wrong train it is no use running along the corridor in the opposite direction. —DIETRICH BONHOEFFER”](https://sms4smile.com/quotes/eric-metaxas/if-you-board-the-wrong-train-it-is-no-use-running-along-the-corridor/) [Eric Metaxas](https://sms4smile.com/quotes/author/eric-metaxas/) > [“You are moving in the opposite direction when your life is about survival only”](https://sms4smile.com/quotes/sunday-adelaja/you-are-moving-in-the-opposite-direction-when-your-life-is-about/) [Sunday Adelaja](https://sms4smile.com/quotes/author/sunday-adelaja/) > [“Come with me," he said quietly and extended his hand. "Nuh-uh." I shook my head, scooting in the opposite direction . "I don't think…](https://sms4smile.com/quotes/j-a-saare/come-with-me-he-said-quietly-and-extended-his-hand-nuh-uh-i-shook-my/) [J.A. Saare](https://sms4smile.com/quotes/author/j-a-saare/) [Browse all 365 Opposite direction quotes ](https://sms4smile.com/quotes/about/opposite-direction/) ```json { "@context": "https://schema.org", "@graph": [ { "@type": "Quotation", "text": "“Because I believed that the choice was between accelerating inflation and deflationary depression, I was holding both gold (which performs well in accelerating inflation) and bonds (which perform well in deflationary depressions). Up until that point, gold and bonds had moved in opposite directions, depending on whether inflation expectations rose or fell. 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