Last Updated on 6 days by Ashley Michael
Billionaire investor Ray Dalio has praised Donald Trump for backing away from his initial plan to impose heavy tariffs on a number of countries, expressing hope that the president will take a similar approach with China as well.
“This is a very good time for all parties involved to reexamine their paths!” Dalio wrote in X late Wednesday, after Trump announced a 90-day moratorium on all “reciprocal” tariffs, except those targeting China.
Ray Dalio statement started Saying, This is a great time for all involved to reconsider their approaches! There are better and worse ways of handling our problems with unsustainable debt and imbalances, and President Trump’s decision to step back from a worse way and negotiate how to deal with these imbalances is a much better way.
I hope and expect that he will do the same with the Chinese, which I believe includes negotiating a deal that appreciates the RMB against the dollar, achieved by the Chinese selling dollar assets while also easing their fiscal and monetary policies to stimulate their demand.
This would be a win-win. The Chinese should then restructure and monetize their excessive local government debts to get their debt overhang behind them. One way or another, there will have to be major changes to the debt/monetary orders to deal with the debt, trade, and capital imbalances problem. The next Trump administration move should be to deal with the deficit well by cutting the deficit to 3pct of GDP, which I described how I’d do without disruption in How Countries Go Broke: the Big Cycle, He added
He also stated This is also a great time for investors who were shocked and terrified by what happened (and what might happen) to reconsider their approaches to structuring their portfolios so they don’t have such intolerable risks.
the investor Ray Dalio says that I can guarantee that another worse case of the market moves that terrified them will come along eventually.