I am reading “Principles.” by Dalio, Ray.
A sentence confuses me in paragraph “MY PRINCIPLES AND HOW I LEARNED THEM”
The sentence is
the consensus view is baked into the price., and its context:
“To make money in the markets, one needs to be an independent thinker who bets against the consensus and is right. That’s because the consensus view is baked into the price. One is inevitably going to be painfully wrong a lot, so knowing how to do that well is critical to one’s success. ”
I'm not very sure of its meaning.
Could it be explained as:
'If you accept the consensus view, you should pay added price because it's integrated into it.'