AP NEWS

Greenwich billionaire eyes economic ‘cauldron’ in 2020

January 22, 2019

The founder of the Westport hedge fund Bridgewater Associates predicted a significant risk for a global recession in 2020, speaking Tuesday at the World Economic Forum in Davos, Switzerland.

Ray Dalio appeared on a panel discussion on Tuesday, later sharing his views on CNBC’s Squawk Box program and saying election-cycle politics will have a big part to play in the slowdown as investors grow cautious.

“It’s not just the United States — it’s Europe and it’s China and it’s Japan,” Dalio said on CNBC. “We look at where we are with interest rates — we are almost at zero. ... The three big factors are the combination of the wealth gap and the politics of it as we come to (elections); where we are in the later cycle; and the inability of central banks to ease (rates) as much. That’s the cauldron that will decide 2019 and 2020.”

Alex.Soule@scni.com; 203-842-2545; @casoulman

AP RADIO
Update hourly