Tags: Ray Dalio | Economic | Picture | Scary

Ray Dalio: Long Term Economic Picture 'Looks Scary'

Ray Dalio, founder of Bridgewater Associates (AP Photo/Anja Niedringhaus, File)

By    |   Friday, 12 May 2017 01:35 PM EDT

Ray Dalio, founder of Bridgewater Associates, reportedly fears a coming downturn will have greater consequences socially and politically.

"Big picture, the near term looks good and the longer term looks scary," Dalio wrote in a LinkedIn blog post Friday.

"We fear that whatever the magnitude of the downturn that eventually comes, whenever it eventually comes, it will likely produce much greater social and political conflict than currently exists," he said.

Dalio listed four reasons for his pessimism, CNBC reported.

  • Economic growth "at or near its best" with no major economic risks in the next two years.
  • "Significant long-term problems" such as high debt levels and limited central bank power "that are likely to create a squeeze."
  • Social and political conflicts "near their worst for the last number of decades."
  • "Conflicts get worse when economies worsen."

But other economic experts are much more optimistic.

Professional investor and media analyst Jon Najarian told Newsmax TV that the stock bull market that has been raging since Donald Trump’s election has enough energy to surge as much as 10 percent more despite some looming “bumps” on the road to more record highs.

“The Trump bump can still run,” Najarian told Sunday’s “The Income Generation Show.”

However, there are other trouble spots that remain.

Finance chiefs from many of the world's leading rich nations pressed the United States on Friday not to break a decades-long global consensus in areas such as trade and financial regulation criticized by Trump.

Inequality, international tax rules and cyber security headed the official agenda for Group of Seven finance ministers and central bankers who kicked off a two-day meeting in the southern Italian port city of Bari, Reuters reported.

But Trump's threats to end a multilateral approach to policies from trade to climate change dominated discussions inside the walls of a 12th century Norman castle.

"We need a strong United States to lead the global economy and global politics in a sustainable way," said German Finance Minister Wolfgang Schaeuble when asked his message for U.S. Treasury Secretary Steven Mnuchin.

(Newsmax wire services contributed to this report).

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Manager of the world's biggest hedge fund says the long term economic picture 'looks scary'
Ray Dalio, Economic, Picture, Scary
Friday, 12 May 2017 01:35 PM
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