Ray Dalio: First comes the boom, then comes the bust

The title paraphrases the CNBC conversation with Bridgewater Associates founder Ray Dalio at the World Economic Forum in Davos, Switzerland. And what Dalio said makes a lot of sense.

The Bridgewater founder’s view is that we are late in the economic cycle. So, we should expect very good things from asset markets. But he also believes central banks will have a tricky time dealing with the consequences. My extended analysis is below followed by the Dalio video.
We have to start with the Taper Tantrum
Let’s give this topic the full-on view. I want to look back to the mid-cycle pause associated with the shale oil bust a few years ago. I’ve gone through my archives and read a bunch of stuff from that time period just now. So let me recap what happened back in 2014 and 2015.  I think it’s r...


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