Ray Dalio: all calm at sea

Legendary investor Ray Dalio sees no risks in the short term. But don't get too comfortable – it may not stay that way.

"The economy is now at or near its best, and we see no major economic risks on the horizon for the next year or two," says Ray Dalio, founder of hedge fund giant Bridgewater. Investors shouldn't expect large returns from here, because "real and nominal interest rates are low as they should be, given where we are in the long-term debt cycle".

Indeed, his analysis suggests that a portfolio equally split between bonds and cash should return an average of 4% over the next ten years. But there are no "classic storm clouds on the horizon", such as "big unsustainable debt flows or a lot of debts maturing that can't be serviced".

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