Photographer: Jason Alden/Bloomberg

Bridgewater’s Dalio Says Risks Are Asymmetric on the Downside

Hedge fund manager Ray Dalio said there are asymmetric risks to the downside for global markets as economies are nearing the end of a long-term debt cycle.

The next move for the Federal Reserve will be toward another quantitative easing, rather than monetary tightening, the founder of Bridgewater Associates said in an interview with CNBC from the World Economic Forum in Davos.

Dalio has said previously that he’s worried about the next economic slowdown because monetary policy will be less effective than in the past. He predicted in September that returns across asset classes over the next decade will only average 3 percent or 4 percent, and that narrower spreads will make it much harder for asset purchases to have a big effect on the market.

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