Renowned investor Ray Dalio has sold his last remaining shares in Bridgewater Associates, a hedge fund he founded 50 years ago. In his statement, he expressed joy about the company's future without him.
Purchase of Bridgewater Shares
After purchasing Dalio's shares, Bridgewater issued new shares to the sovereign wealth fund of Brunei in a multibillion-dollar deal that gave the fund nearly 20% ownership in the company.
Predictions of Economic Crises
Dalio is known for his predictions of economic crises, including the 2008 financial crisis. He expects the world to face a global debt crisis by the end of 2024. Dalio claims that when a country is overloaded with debt, the preferred course of action is to lower rates and devalue the currency. He also warns that the U.S. economy may face an 'economic heart attack' if the government does not reduce the budget deficit.
Criticism of Dalio's Forecasts
Despite his reputation as a market oracle, many of Dalio's economic forecasts have been met with criticism. In 1982, he predicted that the global economy was headed for a depression, which turned out to be incorrect, resulting in significant losses for Bridgewater. Critics argue that his predictions often result from overgeneralization and confirmation bias.
Ray Dalio's financial journey at Bridgewater Associates has come to an end, yet his predictions and views on future economic crises continue to be discussed within the financial community.
