Ray Dalio elaborated on the problems facing US macroeconomic policy while speaking Saturday at the
Ok, well on Wednesday, Dalio was kind enough to speak to Bloomberg whose correspondents are also inÂ Switzerland and now, he’s calling for “the largest bear market in bonds that we have seen since 1980 to 1981.”
Again, this isn’t about whether you like Gary Cohn or whether you think he’s a good choice for the Fed. This is about uncertainty in markets and the extent to which Donald Trump’s ineptitude is setting the stage for all manner of volatility down the road.
Anyway, it’s not populism that should “scare” Dalio, it’s the possibility that stock/bond return correlations flip positive and stay there during some kind of nightmarish VaR shock that sees 10s at 3.5%+.