Dalio Calls End of Central Bank Era, Time to Head to Party Exit
- Sees start of a ‘late-cycle phase’ of balancing tightening
- Central banks helped economy to deleverage with low rates
BlackRock’s Miller Says Central Banks Fear Taper Tantrum
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Famed hedge-fund investor Ray Dalio called time on the era of central bank stimulus, saying the global economy is heading toward a new stage where markets won’t get the same level of support from monetary policy makers.
“The directions of policy are reversing,” with central banks slowing the flow from their proverbial punch-bowls of stimulus, Dalio, chairman of Bridgewater Associates, the world’s largest hedge fund, wrote in a July 6 note. “Our responsibility now is to keep dancing, but closer to the exit and with a sharp eye on the tea leaves.”