Seeking Alpha - Ray Dalio: We're Headed into a Period Like the 1970s, So Buy Inflation-hedge Assets

Article by Brian Syewart in Seeking Alpha

Famed hedge fund manager Ray Dalio said Tuesday that he thinks that the global economy is headed into a period like the 1970s, dominated by inflation concerns and potential stagnation.

As a result, the founder and co-CIO of Bridgewater Associates told CNBC that investors should focus on inflation-hedge assets as a way to protect their portfolios during the coming turbulent time for financial markets.

"The world is not dealing adequately with the part of their portfolios that should be inflation-hedge assets," he said.

Dalio expressed skepticism about the Federal Reserve's ability to tamp down inflation without triggering a recession.

The billionaire argued that too much debt has been created in a short period of time for the central bank to offset without massively increasing interest rates.

"[The Fed] will not be able to raise interest rates to a high enough level to adequately provide a real return to investors," he contended.

Dalio said that political forces will also complicate the investing landscape in the foreseeable future. He pointed to growing populism in the U.S., which has led to more dramatic political divisions, and tensions between nations.

The Bridgewater Associates founder pointed to China as the most dangerous source of possible conflict, arguing that ......

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