Ray Dalio Is Bullish on Chinese Bonds on Growth and Yield Bet
- Global investors to diversify away from U.S. to Chinese assets
- Interest rate, growth differentials favor Chinese assets
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Ray Dalio sees the need to have “a significant portion” of its portfolio in Chinese assets for long-term diversification and shorter-term tactical trading purposes.
Regardless of who wins the presidential election, the U.S. will run bigger deficits and sell more debt, and because investors globally are overweight in U.S. bonds they will diversify, including by investing more in China, the Bridgewater Associates founder said. He favors Chinese bonds over U.S. debt and expects the Chinese currency to benefit from capital inflows.