by Gerardo Del Real
On March 3, 2016, Ray Dalio — Founder, Chairman & Co-CIO of the world’s largest hedge fund Bridgewater Associates — was here in Austin, Texas to speak at the University of Texas Board of Directors 20th Anniversary event.
In typical Ray Dalio fashion he went over the ineffectiveness of current monetary policy, the business cycle — the typical five-to-eight year cycle — and the differences between a short-term debt cycle and a long-term debt cycle — one he feels we’re at the end of — which goes on for 50-75 years.
The speech was important because it highlighted the very few options central bankers around the world have available to them and the potential consequences. As investors and speculators, it’s much simpler to make profitable investment decisions if we’re able to identify the important trends before the herd does.