: Ray Dalio says the Bridgewater ‘Pure Alpha’ fund is up 25% this year

by | Sep 21, 2022 | Stock Market

Bridgewater Associates founder Ray Dalio said Wednesday that the U.S. is suffering from the worst political polarization in more than a century — and that the U.S. is even more polarized today than it was during the Civil Rights era of the 1960s. He also revealed that Bridgewater’s Pure Alpha fund is up 25% year-to-date, which is slightly lower than the 32% gain through June that Bloomberg News reported earlier this year, but still substantially higher than the year-to-date return of the S&P 500 SPX.

During an interview with MarketWatch editor in chief Mark DeCambre that kicked off the inaugural MarketWatch “Best New Ideas in Money” Festival, Dalio said the U.S. is facing “the largest amount of internal conflict since about 1900. Even more than the German ’30s,” he said.

Asked to elaborate on the metrics he uses, Dalio pointed to the growing wealth gap, as well as polarization separating Democratic and Republican voters. See: Ray Dalio says stocks, bonds have further to fall, sees U.S. recession arriving in 2023 or 2024 “The Republicans are more conservative than they have ever been, and the Democrats are more liberal,” Dalio said. “The voting across party lines is the least it has been since 1900,” Dalio added. “You have the largest wealth gap that’s existed…you have a big internal debate over practically everything,” he said. It’s possible that both parties might not accept the results of the next U.S. presidential election in 2024, similar to how former President Donald Trump insisted that President Joe Biden had “stolen” the election in 2020. “It’s an ideological conflict,” Dalio said. And he’s concerned that a recession in the U.S. could aggravate this divide.

“If you have a bad set of economic circumstances, people get angry. And they should, since some of them are suffering,” Dalio said. The …

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