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Ray Dalio Doesn't Anticipate Significant Fed Rate Cuts

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Bloomberg Oct 9 07:53 · 15.4k Views

Billionaire investor Ray Dalio doesn’t see significant rate cuts coming from the Federal Reserve as the US economy “is in relatively good balance.”

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Transcript

  • 00:00 I don't think
  • 00:01 you're going to get significant
  • 00:03 cuts in rates.
  • 00:04 I think you're the economy by and large right now itself
  • 00:08 is in relatively good balance.
  • 00:10 So if you look at where growth is, where inflation is and so on right now and you have a political year,
  • 00:17 I think the markets are getting ahead of themselves with expecting that.
  • 00:21 And I think the risks are more on the upside than the downside.
  • 00:24 If I take them the marketplace as
  • 00:28 let's say equity markets,
  • 00:31 equity markets are
  • 00:33 relatively
  • 00:34 attractive against
  • 00:36 bond markets, but you can't deal with them
  • 00:38 in general
  • 00:39 because
  • 00:42 there's a very limited portion of that.
  • 00:44 We all know the concentration in particularly certain types of tech and AI type of related stocks.
  • 00:53 And if you look at markets as a whole around the world,
  • 00:57 about half of the markets are not above where they were in 2012.
  • 01:02 So
  • 01:02 it and and so you have a very concentrated market
  • 01:06 and that segment is getting
  • 01:08 more expensive.
  • 01:09 So
  • 01:09 for those reasons,
  • 01:11 I think that we're about at equilibrium
  • 01:15 while we have this
  • 01:17 essentially
  • 01:20 ticking time bomb
  • 01:21 with the
  • 01:23 with the debt situation.