Ray Dalio is Chairman & Chief Investment Officer at Bridgewater Associates
(and very, very smart cookie)
Central bankers have clearly and understandably told us that henceforth those flows from their punch bowls will be tapered rather than increased-i.e., that the directions of policy are reversing so we are at
a) the end of that nine-year era of continuous pressings down on interest rates and pushing out of money that created the liquidity-fueled moves in the economies and markets,
and b) the beginning of the late-cycle phase of the business/short-term debt cycle, in which central bankers try to tighten at paces that are exactly right in order to keep growth and inflation neither too hot nor too cold, until they don't get it right and we have our next downturn.
Recognizing that, our responsibility now is to keep dancing but closer to the exit and with a sharp eye on the tea leaves.
h/t and thanks to Sir Steven Patrick Morrissey in the comments here
(pic is Ray, not Sir Morrissey :-D )
