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Ray Dalio Discusses 'Forces' Currently Impacting the Market

Bridgewater founder says US is spending more than it is earning

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Sydnee Gatewood
Sep 15, 2021

Summary

  • The guru also pointed to "internal conflict" and the rise of China.
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Billionaire investor

Ray Dalio (Trades, Portfolio), founder of the world’s largest hedge fund Bridgewater Associates, discussed his views on the market, Federal Reserve and bitcoin, among other topics, with CNBC’s “Squawk Box” on Wednesday.

The guru started off by sharing his view on the market currently, which he emphasized depends on the timeframe.

“I think the relevant timeframe is the next few years,” Dalio said. “And I think you have to put things into context, so there are three big forces that have been at work and I think you have to understand those.”

The first force he identified is the “debt-money thing,” meaning “there is not enough money to go around” in the U.S.

“We are spending a lot more than we are earning,” Dalio said.

The second influence is “internal conflict” over wealth, the left versus right and a number of other divisive topics.

Dalio said the third factor is the “rising of a great power in the form of China,” which is challenging the existing world order.

“Those three things are coming together at the same time as we have a pandemic, so I think each one of those is a cycle,” he said.

Watch a segment from the full interview below.

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I/we have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.
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