Ray Dalio: Why We Believe That the Next Big Fed Move Will Be to Ease (via QE) Rather Than to Tighten

Ray Dalio, Chairman & Chief Investment Officer at Bridgewater Associates says "as you know, the Fed’s template and our template for how the economic machine works are quite different so our views about what is happening and what should be done are quite different." In our opinion, the Fed has over-emphasized the importance of the "cyclical" (i.e., the short-term debt/business cycle) and underweighted the importance of the "secular" (i.e., the long-term debt/supercycle), they will react to what happens. Our risk is that they could be so committed to their highly advertised tightening path that it will be difficult for them to change to a significantly easier path if that should be required. To read the full article by Dalio click the (VIEW LINK)