There Is No Joy In Muddlethroughville: World’s Biggest Hedge Fund Is Bearish For 2012 Through 2028, And Is Long Gold

Tuesday, January 3, 2012
By Paul Martin

by Tyler Durden
Zerohedge.com
01/02/2012

That Ray Dalio, famed head of the world’s largest (and not one hit wonder unlike certain others) hedge fund has long been quite bearishly inclined has been no secret. For anyone who missed Dalio’s must see interview (and transcript) with Charlie Rose we urge you to read this: “Dalio: “There Are No More Tools In The Tool Kit.” For everyone who is too lazy to watch the whole thing, or read the transcript, the WSJ reminds us once again that going into 2012 Dalio’s Bridgewater, which may as well rename itself Bearwater, has not changed its tune. In fact the CT hedge fund continues to see what we noted back in September is the greatest threat to the modern financial system: a debt overhang so large, at roughly $21 trillion, that one of 3 things will have to happen: a global debt restructuring/repudiation; global hyperinflation to inflate away this debt, or a one-time financial tax on all individuals amounting to roughly 30% of all wealth. That’s pretty much it, at least according to mathematics. And according to Bridgewater. From the WSJ: “Bridgewater Associates has made big money for investors in recent years by staying bearish on much of the global economy. As the new year rings in, the hedge fund firm has no plans to change that gloomy view…What you have is a picture of broken economic systems that are operating on life support,” Mr. Prince says. “We’re in a secular deleveraging that will probably take 15 to 20 years to work through and we’re just four years in.” So basically scratch everything between 2012 and 2028? But, but, it was that paragon of investment insight Jim “Bloody Ridiculous Investment Concept” O’Neill keeps telling us stocks will go up by 20%… stocks will go up by 20%….stocks will go up by 20%…

From the WSJ:

The Rest…HERE

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