Billionaire Ray Dalio warns stocks could plunge 20% if interest rates rise to 4.5%

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Billionaire Ray Dalio warns stocks could plunge 20% if interest rates rise to 4.5%
Nederland Laatste Nieuws,Nederland Headlines

Ray Dalio, the founder of Bridgewater Associates, said in a post this week that interest rates will need to rise substantially in order to fight inflation.

Billionaire investor Ray Dalio gives his takes on the latest world news and provides expert analysis on the state of the economy on ‘Cavuto: Coast to Coast.’

on Tuesday. "This will bring private sector credit growth down, which will bring private sector spending and, hence, the economy down with it.", rising interest rates and a darkening economic outlook continue to weigh on the market. The Dow Jones Industrial Average, meanwhile, is down more than 1,800 points, while the tech-heavy Nasdaq Composite has tumbled about 1.7%.

The current benchmark federal funds range of 2.25% to 2.50% is around the "neutral" level, meaning that it neither supports nor restricts. However, Federal Reserve Chairman Jerome Powell has suggested that a restrictive stance will almost certainly be necessary as the central bank tries to pump the brakes on the economy.

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Cash is trash

It's all Biden's fault

Good

They’re gonna do it anyway. Interest rates are an indication, but the disease is still there.

Nederland Laatste Nieuws, Nederland Headlines

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