Ray Dalio is on a book tour and it is wonderful. For while the Bridgewater chief has never been as reticent in public as some of his peers, missives and aphorisms from Westport were previously only occasional, even with the blog and the Twitter account. Now, they come fast a furious, and we could not be happier.
Seriously, the man is on CNBC nearly every day, and it is a delight. Care to know his thoughts on bitcoin? Here you go, and please buy his book. Care to learn what will make Ray happy? Ask and ye shall have it, and also please buy his book, just like Steph Curry did. Hear him talk about things like “the greatest tragedy of mankind” and making other companies more like Bridgewater and what policymakers are telling him privately and how to run a better meeting (hint: videotape it) and “productive wealth transfers” to the poorest 60% among us, and then transfer some wealth to him via Amazon.com. See him in an hour-long chat with his buddy Tony Robbins that had the motivational speaker pulling all-nights, all in service of getting you to buy his book. Oh yea, and he also occasionally talks about his nominal expertise, which is investing. In a couple of words: Beware bonds. Also, a couple more: “Buy my book.”
"We are now in a transition, a whole new different environment. That's the equivalent of entering the late stage of the cycle. That's when there is a tightening. Tightenings become progressively more concerning. … It looks to me there is a significant amount of risk in the bond market."
Dalio also explained why the Republican tax reform plan is negative for bond prices.
"There is going to be probably a larger deficit" as a result of tax reform, he added. "That means more selling of bonds."