Ray Dalio believes global markets are at a “very special moment,” with China on the rise and the relative power of the U.S. facing challenges.
The billionaire founder of Bridgewater Associates said in his video message to the Caixin Summit on Saturday that China’s development is making the country more competitive in luring global capital.
“Simultaneously there’s the rapid development of the Chinese capital markets, the opening up of the markets to foreign investors, the relative attractiveness of them, and the underweightedness of global investors in them,” he said. “This is happening when the fundamentals of the U.S. and U.S. dollar are becoming more challenging, making it a relatively competitive place to move one’s capital.”
Dalio’s comments reinforce recent remarks that he sees the need to have “a significant portion” of Bridgewater’s portfolio in Chinese assets. His perspective comes from an analysis of history and more than 50 years of experience as a macro investor who likes to “bet on what I think will happen,” he said.
While China’s development of a reserve currency and of its financial markets has lagged other aspects of its economy over the past few decades, they will “inevitably catch up,” Dalio said on Saturday, citing the nation’s share in world trade and the size of its economy.
