It wasn't long ago that Raymond Dalio looked at Trump's America and saw a Randian business utopia.
Welp, some things have occurred between now and then so Ray is reportedly recalibrating his massive ego brain and considering that this new president might be something of a wild card....
Ray Dalio, the billionaire who runs the world’s largest hedge fund, said he’s becoming more concerned that the damaging effects of President Donald Trump’s populist policies may overwhelm the benefits of his pro-business agenda.
“We are now in a period of time when how this balance tilts will be more important to the economy, markets, and our well-beings than normally dominant drivers such as central bank policies,” Dalio and co-Chief Investment Officer Bob Prince said in Bridgewater Associates’ “Daily Observations” note to clients on Tuesday.
And, in the interest of radical transparency, Ray offered some deeper analysis in which he tried to maintain a sliver of optimism in the face of objective chaos.
The duo said the current investment environment is marked by “exceptional uncertainty” and recommended avoiding concentrated bets, and holding easy-to-sell assets.
“While there is a lot of potential to improve fiscal policies and make beneficial structural reforms (to enhance the business friendly environment, reduce regulatory inefficiencies, etc.), there is also significant risk that his populist policies could hurt the world economy (and worse),” Dalio and Prince said.
“Nationalism, protectionism and militarism increase global tensions and the risks of conflict. For these reasons, while we remain open-minded, we are increasingly concerned about the emerging policies of the Trump administration,” they said.
It's almost as if Ray Dalio is starting to consider the notion that Trump isn't the kind of guy who would adhere well to Bridgwater's ethos of total honesty and frank criticism.