Thursday, December 13, 2012

RAY DALIO: The US Economy Is Facing A Rare Set Of Circumstances That Will Be Bad For Markets



At the Dealbook conference, Ray Dalio, Steve Schwarzman and David Rubinstein just wrapped up a panel on investing and markets. Of particular interest was Ray Dalio, the hedge fund god who has been killing it throughout the crisis.  And so you have to be intrigued that he's bearish.

He's not wildly so (thinks stocks will do better than bonds) but his basic idea is that risk premiums are maxed out, and have to come down. In other words, people have paid up max dollar for all risk assets thanks to the Fed dropping rates to rock bottom. Now that will reverse....

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