Here’s why hedge-fund billionaire Dalio says the next downturn is what ‘scares me most’

What keeps a billionaire hedge-fund investor up at night?

For Ray Dalio, the founder of Bridgewater Associates, the world’s largest hedge fund, it’s the worry that the next economic slowdown might not be so run of the mill given a variety of factors.

Dalio made the remarks in a panel discussion at the World Economic Forum’s annual meeting in Davos on Tuesday, according to CNBC.

Dalio reiterated that a limited monetary policy toolbox, rising populist pressures and other issues, including rising global trade tensions, are similar to the backdrop present in the latter part of the Great Depression in the late 1930s, the report said.

Archive: Ray Dalio sees troubling comparisons to 1937

Dalio was roasted in 2018 after saying in Davos last January that investors would feel “pretty stupid” for holding cash. But Dalio had the last laugh, with Bridgewater’s Pure Alpha Strategy Fund posting a gain of 14.6% in 2018, while the average hedge fund dropped 6.7% in 2018 and the S&P 500 lost 4.4%.

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