Hedge Fund Analysis Is Fundamentally One Piece of Information You Would Want Demographics of My Country?
Ruben Navarrette: I think that there's a fundamental problem with how a lot of hedge fund guys view large scale macroeconomic issues, they're not great at it. Whereas someone like a commercial banker would have a much better view of the macro economy,. He says bankers are forced to think that way in these high level roles. "Hedge fund analysis is fundamentally one piece of information you would want demographics," he adds.
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Ray Dalio, founder of Bridgewater Associates, has written several books on the world of investing and the economy in general based on his years of experience as manager of the world’s largest hedge fund. In the latest of his ‘Principles’ series, Dalio applies his quantitative approach of macro investing to analyzing countries, seeking to identify the factors that lead to strength such as education and work ethic, as well as lagging indicators such as a reserve currency that allow a country to spend beyond its means but ultimately presage a fall from dominance. Notably, Dalio sees China’s rise to the top of global power as likely, with America, while ahead, slowly declining. Tonight we debate the merits of his analysis, as well as the overall validity of a global macroeconomic approach that overlooks key factors such as demographics in forecasting long term power status.