As more and more analysts search for chinks in the bull market’s armour, one has come forward and made his views very clear. According to Business Insider, Bridgewater founder Ray Dalio believes that the wealth gap between the upper 40% and lower 60% has left the economy dangerously vulnerable to inaccurately measured fiscal policy.
“Because the economic, social, and political consequences of an economic downturn would likely be severe, if I were running Fed policy, I would want to take this into consideration and keep an eye on the economy of the bottom 60%.”
In Dalio’s estimation, the Fed is measuring the economy only by its winners. If he is correct that could mean that their policy could have a huge impact on the bottom half of the country.
Dalio’s criticism coincides with many other analysts and financial planners’ warnings of the market being incredibly fragile. While major stocks have dragged the indexes up, there is very low volatility and an incredibly uncertain future for both tax reform and fed policy.
Investors should cross reference these varying views and make their own judgement on whether some of them hold more water than others, but the underlying theme is clear; more and more experts are seeing warning signs.
To read Business Insider’s article on Ray Dalio’s warnings for the American economy, click here.
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