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Ray Dalio’s Seven Bubble Indicators Are ‘Flickering But Not Flashing’

The founder of hedge fund giant Bridgewater Associates says his study of history prepared him for the 2008 crisis.


Hedge fund guru Ray Dalio has a new book on debt crises, but that doesn’t mean he thinks we’re headed into one. He says his seven indicators of bubbles are “flickering but not flashing,” and his depression gauge, which sent out an alarm before the 2007-09 financial crisis, isn’t glowing red. “We run it,” he says, “and it’s not on.”

Dalio is the founder and co-chief investment officer of Bridgewater Associates LP, which manages about $160 billion in assets, more than any other hedge fund company. He gave me an interview to promote his new bookA Template for Understanding Big Debt Crises. Its purpose, he said, is to share Bridgewater’s ideas for how to prevent more debt crises and to help investors and policymakers deal with them if they occur.