According to Bridgewater Associates most recently filed 13-F, 51% of their portfolio is concentrated in ETF’s that are tailored towards international exposure
Just to play devils advocate, in the 1980’s, Dalio predicted there would be a massive banking crisis. He was all over television, and even testified in front of congress. His prediction turned out to be 100% incorrect, and the market ended up going on the greatest bull run since the roaring 20’s.
This was almost 50 years ago though, and today Bridgewater Associates is the most respected hedge fund in the world, so it is hard to dismiss anything he says.
The biggest obstacle he faces is time. Everybody knows Asia is the future, but the question, though, is when? 5 years? 10? What kind of losses would you be holding over that time frame? How many customers would you lose? In the world of trading, one of the most popular catch phrases is, “Go with the trend”, and clearly the trend is still up for U.S markets.
Whether he is right or wrong isn’t that important right now though. When a man of his caliber makes a statement like this, it helps broaden everybody’s perspective. Dalio is one of the most intriguing men of our time, and his investment strategy says a lot about the state of U.S markets. It’s been almost 1 year since we broke the record for the longest bull run in history, and interest rates have been set at the lowest level in world history for a full decade now. This certainly can’t go on forever.