Ray Dalio Says Recession Risks on the Rise

Billionaire Ray Dalio recently said that the Fed’s response to strong economic data and increased fiscal spending could lead to an “economic slowdown.” This according to a CNBC article. Dalio, founder of Bridgewater Associates, argues that we are in a stage of the economic cycle in which “the central banks’ getting monetary policy right is difficult,” and that “the risks of a recession in the next 18-24 months are rising.” He says that, while most… Read More

Ray Dalio: Recent Market Dips Are Minor Corrections

The head of Bridgewater Associates, the world’s largest hedge fund, says that “the latest sell-off in stocks and bonds is evidence of typical market behavior in the later parts of a cycle and has come sooner than the firm expected.” This according to a recent article on CNBC.com. The article cites a recent blog in which Dalio explains how the current “late-cycle” behavior is more pronounced due to the increased sensitivity of investment assets to… Read More

Ray Dalio Says Market Surge Ahead

 At the recent World Economic Forum in Davos, Switzerland, billionaire Ray Dalio told CNBC that the coming tax cut could lead to big gains for the U.S. stock market. “We are in a Goldilocks period right now,” said the Bridgewater CEO. “Inflation isn’t a problem. Growth is good,” he said, predicting a “market blow off” rally fueled by cash from banks, corporations and investors. “There is a lot of cash on the sidelines,” he added. “If… Read More

Hedge Fund Titan Ray Dalio Says American Debt Likely to be a Drag on Growth

Although Bridgewater Associates founder Ray Dalio doesn’t see a market crisis in the near term, he believes that Americans have accumulated more debt than their assets and income can support. This according to a recent article in The Wall Street Journal. This will “drag” on growth and markets, says Dalio, leaving the economy “acutely vulnerable” to higher interest rates, arguing that the Fed is now being forced to balance containing inflation through rate hikes with… Read More

The Bridgewater Culture and “Principles” of Ray Dalio

Westport, Connecticut-based Bridgewater Associates, the largest hedge fund firm in the world, was one of the first to “embrace quantitative analysis,” according to a recent article in The New York Times that  delves into the idiosyncrasies of the Bridgewater culture—both positive and negative—on what it terms a “rigid and sometimes oppressive work environment.” The article describes the strict set of rules, or “Principles,” created by CEO Ray Dalio , which include “advising employees not to… Read More

Podcasts of the Week: Dalio, Bass, Gardner & Egan

By Jack M. Forehand — As I discussed in my Best Investing Podcasts article last week, podcasts have become a great source of investing knowledge for me. The format allows for conversations with much more depth than traditional mediums like TV and radio and I tend to learn at least one thing I didn’t know before from each episode. Given that there are many podcasts, and most people lack the time to listen to all… Read More

Dalio and Gundlach Say Emerging Markets are Risky

A host of concerns across the globe are raising red market flags for heavy-hitting investors such as Ray Dalio and Jeffrey Gundlach, says a recent Bloomberg article. Among the concerns; rising global turmoil and terrorist activity, valuations that “no longer compensate for potential flareups in North Korea and Venezuela,” and unpredictability on Wall Street. Emerging market shares are among the assets causing worry, given that they are yielding less that U.S. junk bonds for “only… Read More

Master Investors Marks, Dalio & Gundlach Issue Cautionary Views on Markets

By John P. Reese — The waning days of August leave many parents looking forward to the start of school and many investors bracing for September, the month that is historically the worst of the calendar year for stocks. Add the increasing uncertainty coming out of Washington and stock valuations that look increasingly overheated, and it’s enough for a few prominent investors to warn that a pullback is probably on its way. That may not… Read More

Dalio Says Global Economy Entering New Phase

Billionaire hedge fund investor Ray Dalio says the global economy is entering a new phase where “markets won’t get the same level of support from monetary policy makers,” according to a Bloomberg article from earlier this month. The chairman of Bridgewater Associates recently wrote that central bankers are shifting from the nine-year period of holding down interest rates and are giving clear signals that stimulus will be tapered. He notes the following: The Fed is… Read More

Bridgewater’s Ray Dalio Offers Advice to the Everyman Investor

Ray Dalio, chairman of the world’s biggest hedge fund (Bridgewater Associates), recently shared his “best advice for the common investor” with Business Insider’s Henry Blodget. According to Dalio, the article says, most investors can’t compete with professionals and institutions that allocate huge sums of money each year in an effort to beat the market. Instead, argues Dalio, the common investor “should be building a diversified portfolio with assets that are balanced according to their risk… Read More