The rise of populism across developed nations is now more important than central banks for global market participants, Ray Dalio, the founder and co-chief investment officer at Bridgewater Associates, said Wednesday.
Dalio – whose company is often named the “world’s largest hedge fund” with around $150 billion of assets under management – said that populism, which includes negative views on globalization, was now the number one concern for market participants.
“Populism is not just the belief that there is a wealth gap … But it’s also a sense that they don’t represent me. It’s a matter of nationalism, it’s a matter of getting greater control. It’s a matter of increased polarity – the left becomes more left, the right becomes more right – and that particular dynamic, I would say that this is the first year where populism is the most important issue globally,” he said at a Bloomberg hosted panel at the World Economic Forum in Davos.
Wednesday’s panel in Davos – which also featured economist Larry Summers and Christine Lagarde from the International Monetary Fund (IMF) – discussed the poor employment prospects and low-income growth in many developed economies and the rise in populism seen in the U.S. and several European nations.
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