GREENWICH, Conn. — Ray Dalio of Greenwich, the richest man in Connecticut and founder of the largest hedge fund in the world, talked about the bull market and some of his biggest worries in a new video series by Business Insider.
Dalio sat down recently with Business Insider Editor-in-Chief Henry Blodget for the premiere episode of The Bottom Line . In his interview, Dalio discusses how recent political and world events could impact the stock market and the United States economy.
According to Forbes Magazine, Dalio has a net worth of $15.9 billion, as of February 2017. He is the founder of Bridgewater Associates, the largest hedge fund in the world, which has its offices in Westport.
Dalio said in his interview with The Bottom Line that world events such as political upheaval, wars and terrorist attacks can create nervousness and influence the market, these kinds of events are not long-term.
"Those are normally very short, quick events that the markets and circumstances adapt to. So most likely, market turmoil or big things won't primarily come from there," he said.
He also discusses the rise of populism in the world, and how it can have an impact on the economy.
"In history it's been one of those situations that has sometimes led to democracies choosing to give up democracy in favor of dictatorships," he said. While he said that President Donald Trump and other political movements in Europe have by and large been populist in nature, he isn't necessarily predicting that history is repeating itself in terms of creating dictatorships. But he said he is looking at it to see how it evolves, because the economic situation we're in today is similar to the 1930s, when countries became much more populist.
"If you were to see that happen in the United States or Europe, you would have something that would be of concern, because that would alter how the economic conditions work."
He said it remains to be seen what kind of fiscal policies will come from Washington and what kind of effect they will have. He doesn't think fiscal policies will lead to radical changes in the economy. He's also not worried about the next couple years, but "I'm worried about what the next downturn might look like. The effectiveness of monetary policy in stimulating an economy is less than it used to be."
He also discusses his beginnings in the hedge fund game, and how he learned from his mistakes early on and used them to create success. He talks about how some people today don't have the same opportunities he did, and what changes could be made in the country to create more success.