Ray Dalio and the WSJ Spar Over Alleged $1B Bet

Friday morning, the WSJ published a story suggesting Ray Dalio’s Bridgewater Associates, the world’s biggest hedge fund, bet more than $1 billion that global stock markets would fall by spring 2020. Shortly after, Dalio said the story was false.

The WSJ claimed that Bridgewater wagered about 1% of its total assets under management on put options on the S&P 500 and Euro Stoxx 50 expiring in March.

• Brewgle Translate: Bridgewater makes $$$ if one or both of the indexes fall.

Dalio’s rebuttal:

Via @RayDalio

Dalio continued, “I believe that we are now living in a world in which sensationalistic headlines are what many writers want above all else...You can believe me or you can believe The WSJ writer.”

Big picture: Dalio did say earlier this week that, given rising pension and healthcare debts, low interest rates, and handcuffed central banks, the economy is heading for a “Great Sag.” Not a recession, not $1 billion worth of bearish sentiment...but a Great Sag.