[ad_1]
Ray Dalio Brief European Shares
Dalio’s agency Bridgewater Associates has offered quick roughly $10 billion in European shares. The largest quick place being in ASML. [1]
All the 26 shares he shorted are primarily based in Europe and are a part of the Euro Stoxx 50 which is an index just like the U.S. S&P 500 and NASDAQ 100.
Ray Dalio Stagflation
Stagflation is persistent excessive inflation mixed with excessive unemployment and stagnant demand in a rustic’s economic system.
Ray Dalio says stagflation is probably going as a result of the Federal Reserve is failing to “Drive the markets and economic system like a superb driver drives a automobile.”
“Central banks ought to use their powers to drive the markets and economic system like a superb driver drives a automobile—with mild purposes of the gasoline and brakes to provide steadiness reasonably than by hitting the gasoline onerous after which hitting the brakes onerous, resulting in lurches ahead and backward.” – Ray Dalio [2]
He says “Stagflation will likely be the price of decreasing inflation.” He says that stagflation will drive the Fed to slash rates of interest by 2024. “We’re in a tightening mode… the ache of that may change into nice,” Dalio mentioned. [3]
Ray Dalio on the Markets
Ray Dalio says “Money remains to be trash… however shares are trashier.”
Throughout a time when inflation is weighing closely on actual returns, Dalio mentioned buyers can be higher off with actual belongings like actual property.
Ray Dalio doesn’t suppose the Federal Reserve can obtain a delicate touchdown within the economic system after it has change into so overheated with excessive asset valuations and inflation. Dalio mentioned that the Fed can’t decelerate demand with out breaking the economic system.[4]
Dalio sees inflation evolving into stagflation and the greenback dropping its shopping for energy because the Federal Reserve tries to fight inflation that has gotten uncontrolled.
[ad_2]
Source link