Date updated:05-26-2007
From Interview Barron's 5-28-07
"Ray Dalio has been at the forefront of change in the hedge-fund and investing world since he started Bridgewater Associates of Westport, Conn., more than 30 years ago. A culture that rewards innovative and pioneering work has resulted in powerful long-term performance. The dedication to excellence fostered by Dalio has made Bridgewater a global powerhouse, with $160 billion under management and clients that range from central banks and foreign governments to pension funds and endowments.
Barron's: How would you describe your overall outlook?
Ray: Bond yields are going to go up by 75-100 basis points [0.75 to one percentage point], and credit spreads will widen. There are three really big forces driving the markets and driving the global economy, and if you could imagine those forces moving through time and interacting with themselves and each other, you will understand my view of the world. There is an economic market cycle, there is the China and oil factor, and there is leverage. We are in the early stages of the late part of the economic cycle. The late part of the cycle is when inflation begins trending up, and the tradeoff between inflation and growth becomes more acute, and central banks tighten monetary policy.
Barron's: What are you betting on in this environment?
Ray: We have anti-carry trades. We generally have bets on wider credit spreads. We have bets on interest rates rising, not declining. We are long commodities and we are long emerging-market currencies. And we expect to increase these positions with time.
Barron's: Who's really gaining here? It seems to me as hedge funds proliferate we are seeing more mediocre results.
Ray: Hedge funds and private-equity firms today are like the dot-coms in 2000: Ask for money and you'll get it. They bid up the prices of everything. The amount of money flowing is almost out of control, and it's making everything overvalued. A client of mine said it's like there are 11,000 planes in the sky and only 100 good pilots -- an accident is bound to happen. Just like the dot-com bust, the winners and losers will be sorted out but the technological advances won't stop. There is a greater differentiation of managers now than ever before. For example, practically all good managers are closed to new investment. And there is fee differentiation. The business has become much more technologically intensive and people intensive. It is much tougher for new boutiques to compete."

-
KO
Coca Cola Co The - $57.48
- +1.05%
- $56.69
No Analysis added

-
JNJ
Johnson And Johns - $62.31
- +0.60%
- $61.82
No Analysis added

-
PEP
Pepsico Inc - $62.08
- +0.32%
- $61.67
No Analysis added

-
WMT
Wal Mart Stores - $54.28
- -0.48%
- $54.53
No Analysis added

-
XOM
Exxon Mobil Cp - $74.38
- -0.36%
- $74.38
No Analysis added

-
AIG
Amer Intl Group N - $35.10
- -1.57%
- $35.62
No Analysis added

-
MRK
Merck Co Inc - $36.46
- +3.20%
- $35.45
No Analysis added

-
MO
Altria Group Inc - $18.98
- -1.20%
- $19.16
No Analysis added
- Top Professional Portfolios
- 1. Fidelity Contrafund - ...
- 2. Navellier & Associ...
- 3. Calamos Advisors
- 4. Argus Management
- 5. Bernard L. Madoff Inve...
- show all
- Top Do-It-Yourself Portfolios
- » Joseph Russell Portfolio 1
- » Albo's First Portfolio
- » Darrell Werth Portfolio 1
- » Echo5Joker's Portfolio
- » jgroov Portfolio 1
- show all
- Most Viewed Portfolios
- » Warren Buffett
- » George Soros
- » T. Boone Pickens - BP Cap...
- » Carl Icahn
- » Renaissance Technologies
- show all
Not a Stockpickr member? Join the community today -- for free.Regardless of why a stock is in the news, it never hurts to hear what a professional investor has to say about...
By Roberto Pedone Posted on Nov. 20, 2009 According to Jim Cramer, options expiration is driving the current market selloff. He pointed out that the only stocks that we...
By Roberto Pedone Posted on Nov. 19, 2009 According to CNBC’s “Fast Money” traders, the stock market is showing no signs of stopping its current bull run. Joe Ter...
By Jonas Elmerraji Posted on Nov. 18, 2009 There are plenty of reasons for stocks to have the attention of short-sellers. Waning financials, a deteriorating business mo...
A. source:wikipedia
A. The only one I own : SLX,
too hard pick a winner out all of them
Here are some of the biggest stocks that made the 52-week high list on Nov. 20, 2009. more
These are some of the stocks mentioned on TheStreet.com TV recently. Click the URL below each stock to watch the videos. more
Unusually active options can often indicate that a major event in a stock is about to take place, or that unsophisticated investors (using options in lieu of leverage) are ... more













Comments not available