Hedge fund guys like Dalia are smart. They drive the activity and they do force particularly institutional investors, banks, to think creatively rather than get stuck in some sort of antiquated world view or a bad investment. But my ultimate point is you can't give guys like that huge strategic capability because that is not what they operate on. And he's really screwing up when it comes to China especially where they don't have a broad-based immigration policy.
Transcript
chevron_right
Play full episode
chevron_right
Transcript
Episode notes
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.
