Billionaire hedge fund manager Ray Dalio says market surge ahead: 'If you're holding cash, you're go

Discussion in 'Wall St. News' started by ajacobson, Jan 23, 2018.

  1. Dalio on CNBC


    Billionaire hedge fund manager Ray Dalio says market surge ahead: 'If you're holding cash, you're going to feel pretty stupid'
    • "We are in this Goldilocks period right now. Inflation isn't a problem. Growth is good, everything is pretty good with a big jolt of stimulation coming from changes in tax laws," Ray Dalio told CNBC on Tuesday from the World Economic Forum in Davos, Switzerland.
    • The investor said we're in the late part of the cycle and predicts we will see "a market blowoff" rally, fueled by cash from banks, corporations and investors.
    Tae Kim | @firstadopter
    Published 6 Hours Ago Updated 3 Hours AgoCNBC.com

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    Ray Dalio says market surge may be ahead: 'If you're holding cash, you're going to feel pretty stupid' 5 Hours Ago | 02:06

    Bridgewater Associates founder Ray Dalio said the tax cut could lead to some big gains for the U.S. stock market.

    "We are in this Goldilocks period right now. Inflation isn't a problem. Growth is good, everything is pretty good with a big jolt of stimulation coming from changes in tax laws," Dalio told CNBC on Tuesday from the World Economic Forum in Davos, Switzerland.

    The investor said we're in the late part of the cycle and predicts we will see "a market blowoff" rally, fueled by cash from banks, corporations and investors.


    "There is a lot of cash on the sidelines. ... We're going to be inundated with cash," he said. "If you're holding cash, you're going to feel pretty stupid."

    The S&P 500 is up 25 percent in the past 12 months. The current bull market started in 2009.

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    Adam Galica | CNBC
    Ray Dalio at the 2018 WEF in Davos, Switzerland on Jan. 23rd, 2018.
    Dalio explained that the Federal Reserve's potential rate hikes are the key risk for the market. He said if the central bank increased interest rates by 100 to 125 basis points, asset prices will drop.

    "You can't have a significant rise in interest rates without knocking over the whole asset markets," he said. The "Fed is going to determine what the level of real interest rates are."

    Bridgewater is the world's largest hedge fund, managing about $160 billion, according to its website. Dalio started the firm in 1975 out of his two-bedroom apartment in New York City. He is now worth an estimated $17 billion, according to Forbes.

    The investor released a book entitled "Principles: Life and Work" in September. Dalio shared his life lessons such as the time he nearly went broke.

    "I'd lost so much money I couldn't afford to pay the people who worked with me. One by one, I had to let them go," he wrote. "To make ends meet, I even had to borrow $4,000 from my dad until we could sell our second car."

    WATCH: CNBC's full interview with Bridgewater founder Ray Dalio


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    Ray Dalio: US markets in 'beautiful Goldilocks' period 5 Hours Ago | 15:27

    Disclaimer


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    Tae Kim
    Investing Journalist
     
    dealmaker likes this.
  2. comagnum

    comagnum

    In other words Ray Dalio is going to start unwinding his positions and hopes the crowd will help him out with this.
     
    volpri, cdcaveman, d08 and 3 others like this.
  3. zdreg

    zdreg

    dalio must be a disciple of Soros. such action is straight out of Soro's playbook. soros repeatedly plays that game.
     
    Last edited: Jan 23, 2018
  4. zdreg

    zdreg

    profits from crypto currencies will propel the market.
     
  5. I'd be tempted to agree, but given the epic stupidity displayed lately, no rational thought can be entertained
     
    cdcaveman and d08 like this.
  6. Why would they say anything that wasn't in their interest. If they are long they want to tell the audience they are bullish.. if they want to exit longs they want to tell the audience they are bullish.... And what do you think we have been experiencing if not a blow off rally already
     
  7. I just hope it crashes hard.
     
  8. RedDuke

    RedDuke

    Why would you want that???
     
  9. truetype

    truetype

    Because he missed the rally?
     
  10. RRY16

    RRY16

    What's your "coverage" saying? Shake Shake opened in Calif...it's pretty pretty good.
     
    #10     Jan 23, 2018