Hedge Fund King Ray Dalio On China, QE3, And The Odds Of A Downturn

ray dalio

It isn’t every day that Ray Dalio opens up to the world and speaks.

Dalio is widely considered the most powerful hedge fund manager in the world.

Perhaps because his secretive Connecticut firm, Bridgewater, is the largest in the world with $130 billion under management.

Also, perhaps, because he does what many money managers are unable to do — navigate the choppy waters of today’s market and consistently produce alpha.

So his appearance on CNBC’s Squawk Box this morning deserves your rapt attention.

We live blogged it below.

Our favourite quotes:

ON CHINA: “In China anything less than 6% growth is a recession meaning that it also causes financial problems and it’s disruptive and it’s a problem. So I think that we are in that vicinity… But the fact that they can have 6% growth and think that’s depressing and we can have 2% growth and think that that’s pretty good is a reflection of the difference in our competitiveness.”

ON QE3: “I think it’s a reasonable plan.”

ON GOING BACK INTO RECESSION: 

“I worry about the policymakers getting (the balance between fiscal and monetary policy) right….”

“Being in the betting business I also know and I don’t know….there are reasonable risks that it won’t be managed well.”

 

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