Money and Finance
Ray Dalio: Southern Europe Is About to Enter a ‘Lost Decade’
Found via The Big Picture.
The euro zone crisis will likely create a “lost decade” in southern Europe, hedge-fund honcho Ray Dalio said Wednesday.
The founder of the hedge-fund giant Bridgewater Associates was speaking Wednesday morning at the Council on Foreign Relations in New York. During his hour-long remarks, Dalio touched on everything from how economic cycles work to the proper role of gold in a portfolio. He devoted special attention to Europe’s debt crisis, comparing the situation to the Latin American debt crisis and Japan’s lost decade.
Southern European countries are in the early stages of a major deleveraging that will produce a Depression-like environment, Dalio said.
“I think we’re going to have a bad set of economic conditions,” Dalio said. “You’ll go through 10 years of cycles, very much like Japan, where you’ll have bull markets and bear markets.”
But he added lost decades could be survived and typically took about 15 years to work through.
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