Written by John Lounsbury
Ray Dalio returms for a second week in a row. This week is a 2016 interview of the founder of Bridgewater Associates in which he describes the end game for the current debt cycle as he sees it. He missed forecasting the attempt of the Fed to raise rates in 2018 which now appears to have been a failure. So we are back on his predicted trend.
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Dalio thinks that the end game for the current debt cycle is approaching and will involve directly transferring money to consumption – a process Milton Friedman described as “helicopter money”. The transfers to date have been to the financial economy and he says that will change.
From Wikipedia:
Raymond Dalio (born August 8, 1949) is an American billionaire investor, hedge fund manager, and philanthropist.[3] Dalio is the founder, Co-Chairman and Co-Chief Investment Officer of investment firm Bridgewater Associates, one of the world’s largest hedge funds.[4] [5] Bloomberg ranked him as the world’s 58th wealthiest person in June 2019.[6]
Ray Dalio was born in the Jackson Heights neighborhood of New York City’s Queens borough.[7] He is the son of a jazz musician, Marino Dallolio (1911 – 2002), who “played the clarinet and saxophone at Manhattan jazz clubs such as the Copacabana,” and Ann, a homemaker.[7][8][9] He is of Italian descent.
Dalio began investing at age 12 when he bought shares of Northeast Airlines for $300 and tripled his investment after the airline merged with another company.[10] Dalio received a bachelor’s degree in finance from Long Island University (CW Post) and an MBA from Harvard Business School in 1973.[10][11]
After completing his education, Dalio worked on the floor of the New York Stock Exchange and traded commodity futures.[10] He later worked as the Director of Commodities at Dominick & Dominick LLC.[12] In 1974 he became a futures trader and broker at Shearson Hayden Stone.[10] In 1975 he founded investment management firm Bridgewater Associates out of his apartment.[13] The firm opened an office in Westport, Connecticut in 1981 and became the world’s largest hedge fund in 2005.[13] As of October 2017 it had $160 billion in assets under management.[14] In 2007 Bridgewater suggested there might be a global financial crisis,[15] and in 2008 Dalio published “How the Economic Machine Works: A Template for Understanding What is Happening Now”, an essay assessing the potential of various economies by various criteria.[16]
In 2011 he self-published a 123-page volume, “Principles”, that outlines his philosophy of investment and corporate management based on a lifetime of observation, analysis and practical application through his hedge fund.[17][18]
In 2012 Dalio appeared on the annual Time 100 list of the 100 most influential people in the world.[19] In 2011 and 2012 Bloomberg Markets listed him as one of the 50 Most Influential people. Institutional Investor’s Alpha ranked him No. 2 on their 2012 Rich List.[20][21]
In 2017 Simon & Schuster published Principles: Life & Work. The book was a New York Times #1 best-seller and Amazon’s #1 business book of 2017.[22] Dalio discusses his background as a backdrop for his takeaways about life and work. He has announced that he will write a second volume, Principles: Economics & Investing.[23]
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