Ray Dalio: Debt will be a drag on the recovery
Dalio spoke with the WSJ
Bridgewater's Ray Dalio warned that high asset prices can't continue in a world with
"It becomes more and more difficult to balance those things as time goes on," Mr. Dalio told Greg Ip. "It may not be a problem in the next year or two, but the risk of not getting it right increases with time."
Ip points out the apparent contradiction in Dalio's public comments and his fund's investments.
"When Mr. Dalio speaks, how closely should you listen? As with many
famous investors, it's hard to know how much his public views drive
Bridgewater's actual strategy, which remains secret. Since Bridgewater
detailed this thesis in a series of newsletters in 2016, events haven't
exactly followed the script. Last year, the S&P 500 index rose 19.4%, the best since 2013; Bridgewater's competing diversified fundreturned about 12%."