Ray Dalio on Unpredictability of Markets

The recent news that Bridgewater Associates’ flagship fund—the Pure Alpha fund—lost 4.9% in the first half of this year should underscore the unpredictability of markets, according to a recent article inBloomberg. The article cites the performance of the SPDR SSgA Global Allocation ETF, which tracks the broader markets and was up 12% for the year (as of July 19th). The article notes two takeaways: ·      “The globalization of the world economy in recent years means that… Read More

Ray Dalio: Gold Will Appeal During Global Market “Paradigm Shift”

Billionaire investor Ray Dalio believes that the push by central banks toward policies that devalue currencies is about to cause a shift in investing toward assets such as gold. This according to a recentCNBC article. In a recent LinkedIn post, the article reports that Dalio explained, “For this reason, I believe that it would be both risk-reducing and return-enhancing to consider adding gold to one’s portfolio.” The article points out that his note comes two… Read More

Ray Dalio: Risky Days Ahead in U.S.-China Trade War

Billionaire investor Ray Dalio, founder of Bridgewater Associates, said that he sees the tension between the U.S and China as more than a trade war, adding that more stringent export controls could trigger a major escalation. This according to a recent article in Bloomberg. Using the example of Huawei Technologies Co., Dalio wrote in a recent LinkedIn post that the U.S. move to shut off supply to the company represents a step in “weaponizing” export… Read More

Dalio: Conflict Gauge Highest Since WWII

Ray Dalio, the founder of Bridgewater Associates, said a gauge his firm created to measure the level of global conflict is at its highest level in more than 70 years, according to an article in Bloomberg. In an interview with CNN, Dalio said, “There is more polarity, more conflict internally, of a sort.” In 2017, Dalio warned that populism will be a more powerful force than monetary or fiscal policies, the article reports, with politics… Read More

Ray Dalio: Investors Unprepared for Next Bear Market

At the Greenwich Economic Forum last November, Bridgewater Associates founder Ray Dalio expressed concern that most stock investors are ill-prepared to handle the next bear market. This according to an article in Chief Investment Officer. Dalio, who said that the current bull market was driven by the Fed’s low interest rates, said “everybody’s sort of leveraged long,” adding that, “if you have a downturn, there’s not much ability for that downturn to be dealt with… Read More

Dalio Talks Debt Crises in New Book

In an interview with CNBC in September, Bridgewater Associates founder Ray Dalio discussed his new book, “A Template for Understanding Big Debt Crises,” in which he shares lessons learned from history’s financial downturns. Dalio’s book describes the six stages that lead to debt crises. Of these, he says, the most important is the “bubble stage” in which asset prices are rising and people are borrowing excessively. “Central banks don’t pay much attention to the bubble… Read More

Ray Dalio on the Odds for Trade and Other Wars

A recent Bloomberg article recounted comments made my Bridgewater Associates founder Ray Dalio on LinkedIn. Here are a few: “Recent geopolitical developments have led me to raise my probabilities of trade and other types of wars, such as capital wars, cyber wars (and possibly even shooting wars).” Dalio described current trade talks with China as a “public game of chicken” since President Trump “raised the stakes by another $100 billion.” While he initially “thought trade… Read More

Ray Dalio Talks to Google About his “Principles”

In a recent talk at Google, Bridgewater Associates CEO Ray Dalio discusses his views on life stages, the evolution of Bridgewater and the “idea meritocracy” upon which the firm is built. Dalio explains that an idea meritocracy is born of partnering meaningful work with meaningful relationships, and that this is accomplished through “radical truthfulness and radical transparency”. His presentation to the Google audience includes various slides and video clips that illustrate his approach. Within Bridgewater,… Read More

Dalio’s $22 Billion Bet Against Europe

Billionaire fund manager and Bridgewater founder Ray Dalio is “leading his firm down a path few other funds care to tread,” that involves selling off European holdings to the tune of $22 billion. This according to a recent article in Bloomberg. The article explains that Europe’s strong economy, tight labor market and rising interest rates are factors that fulfill Dalio’s “sell” requirements. Last year, it reports, Europe’s economy grew at the fastest pace in a… Read More

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