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Ray Dalio: Preacha Tellin' The Truth And It Hurts!

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The truth, according to Bridgewater, being: 1) the world is going to hell in a handbasket and 2) 2011 will be the Year of the Hyena.

These days, the view from Bridgewater is dour. Dalio, who this year changed his title to mentor from president, divides the world into two groups: developed debtor nations that are deleveraging and emerging creditor countries that are leveraging up. After years of overspending financed by borrowing, the former are being forced to lower their debt relative to their income levels, constraining spending levels and employment gains. “Making money is a zero-sum game, so to be successful you have to be willing to stand apart from the crowd,” Dalio says. “And you have to be right.”

The founder was right often enough during and after the worst financial crisis in decades starting in 2008, helping to cement his reputation as a leader in his industry...amid the market turmoil of 2011, the fund is up 25.3 percent through Aug. 31.

Dalio Returns 25% With Diversified Bets as Markets Convulse [Bloomberg Markets Magazine]