{"id":18224,"date":"2024-04-04T14:17:46","date_gmt":"2024-04-04T14:17:46","guid":{"rendered":"https:\/\/news.talkwithrattan.com\/index.php\/2024\/04\/04\/ray-dalio-defends-his-decades-long-investment-in-china-times-of-india\/"},"modified":"2024-04-04T14:17:46","modified_gmt":"2024-04-04T14:17:46","slug":"ray-dalio-defends-his-decades-long-investment-in-china-times-of-india","status":"publish","type":"post","link":"https:\/\/news.talkwithrattan.com\/index.php\/2024\/04\/04\/ray-dalio-defends-his-decades-long-investment-in-china-times-of-india\/","title":{"rendered":"Ray Dalio defends his decades-long investment in China – Times of India"},"content":{"rendered":"
\"Ray<\/div>\n
Bridgewater Associates founder Ray Dalio defended his decades-long investment in China and pledged he won\u2019t abandon the world\u2019s second-largest economy even with all of the problems there he\u2019s identified and the risks of a war with his own country, the US.
\u201cI have had a wonderful 40-year relationship with the Chinese people and the Chinese culture that has led me to love them.For me, being involved with them and their markets go together and I wouldn\u2019t want to be without either,\u201d the billionaire investor wrote in a LinkedIn post. \u201cI don\u2019t jump in when things are booming and jump out when things are tough because I am neither \u2018a fair-weather friend\u2019 nor \u2018a fair-weather investor.\u2019\u201d
In an earlier post from March 27, the hedge fund titan had discussed the many difficulties and challenges China\u2019s faced and warned that Beijing<\/a> should cut its debt and ease monetary policy or face \u201ca lost decade.\u201d
Dalio said China\u2019s problems are manageable now if \u201cChinese leaders do their job well by being both smart and courageous.\u201d He pointed to signs that the economic leaders in Beijing are preparing to conduct quantitative easing along with debt restructuring to engineer what he described as a \u201cbeautiful deleveraging.\u201d
Last week, a line from a 172-page book citing President Xi Jinping\u2019s old comments on the nation\u2019s monetary tools stoked a group of stock and bond traders to argue that may mean Beijing is considering quantitative easing, which involves a monetary authority buying a country\u2019s government bonds. But the speculation was rejected by most commentators, including economists at Goldman Sachs Group Inc.
To Dalio, Chinese policymakers are able to \u201cmanage how to deal with political, geopolitical, nature, and technology forces well.\u201d He has long nurtured relations with Chinese officials, expressed admiration for some of Beijing\u2019s economic policies and built business for his firm in China. Dalio was among the prominent American business chiefs sharing the top table with Xi at an exclusive dinner in San Francisco last November.
At the same time, he has also been consistent in warning about the risk of conflict between the world\u2019s two largest economies. Last April, he wrote in a LinkedIn post that tensions could worsen as the US heads toward the presidential election in November 2024.
In Monday\u2019s post he said he understands others when they are concerned \u201cif there is a US-China war it would be disastrous especially if one is an American investor.\u201d Dalio admitted this is one of the issues he thinks about a lot when considering investing in most countries.
None of these, however, seems to stop Dalio from doing business with China.
\u201cTo me the key question isn\u2019t whether or not I should invest in China so much as how much I should invest,\u201d he wrote, adding that he sees China as one of his \u201c15 or more good uncorrelated return streams\u201d and \u201ca core position that I will vary from based on my assessments of all of the things I mentioned.\u201d<\/div>\n