Dalio Warns: A Bond ‘Blow-Off’ as a Repeat of the Late 1930s Depression Era Looms
August 30, 2019 by IWB
Hedge fund kingpin Ray Dalio is warning that current conditions remind him of the Depression-era environment.
He cited three factors: Ineffective central banks, high levels of debt and the U.S.-China conflict.
Dalio previously predicted a “paradigm shift” that would benefit gold.
Hedge fund titan Ray Dalio is worried that the current landscape is starting to resemble Depression-era conditions that could hammer investors.
In a LinkedIn post Thursday, the billionaire Bridgewater Associates founder said high levels of debt and central banks’ ineffectiveness are two of the key factors that need watching. The U.S.-China conflict is adding to the problems as an existing power battles an emerging one.
“If/when there is an economic downturn, that will produce serious problems in ways that are analogous to the ways that the confluence of those three influences produced serious problems in the late 1930s,” Dalio wrote.
Categories: Economic Collapse