Artificial Fed moves driving investors to riskier assets, said hedge fund titan Ray Dalio, founder of Bridgewater Associates. But he also had a warning for investors in an interview with CNBC.
Ray Dalio segment below
hedge fund manager ray dalio receiving the money management lifetime achievement award last night. here’s what he had to say when asked if all the fed’s quantitative easing has been artificially inflating the markets. i think what has been artificial is there’s been a lot of printing of money which has driven short-term interest rates to make cash terrible investments and to make bond a terrible investment. both the printing of money and the seeking of safe returns have driven money into cash. with a negative return of 2% in cash and half a percent in bonds, that’s a bad investment. as a result there’s a reaching for return. that’s driven other assets up. there’s a beginning of a leveraging process. and that is good for assets over the near term. so i think that assets will continue to appreciate, but there will also be a tightening ahead. we had him on last fall and he predicted a little bit of where we are today. said there would be a turnover. we haven’t seen the full turnover from bonds. the grand rotation. almost 2% on the tenure. he wasn’t giving away too much. were you here for tepper? of course i was. good interview.