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 interest rate changes. “Fiscal stimulation is hitting the gas,” he wrote, “which is driving the economy forward into the capacity constraints, which is triggering interest rate increases that are hitting the brakes, first in the markets and later in the economy.” This, he argued, is all happening sooner than expected.

Recent market declines, argues Dalio, “are just minor corrections in the scope of things, there is a lot of cash on the sideline to buy on the break, and what comes next will be most important.”