According to Ray Dalio, the founder of Bridgewater Associates (a hedge fund with over $150 billion in AUM), the current economic cycle has about two years before the next recession. In the week commemorating ten years since the Lehman Brothers crash in 2008, Ray Dalio reminded central banks that they should always keep track of the economy for the formation of bubbles.
If they want to support the economy and the markets, the central banks will need to follow a policy of slower increases in interest rates. According to Dalio, one of the major risks to the economy is that the Federal Reserve may start to raise interest rates too fast: the central bank must adhere to market expectations to avoid shocks.
Dalio sees the next crisis as a slow process, not a sharp downturn in the economy, which, however, will be accompanied by significant social and political crises.
Photo: Ray Dalio Official Twitter
Original post: Billionaire Ray Dalio: We are in the 7th inning of the current economic cycle
Source: CNBC
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