https://www.linkedin.com/pulse/war-china-spreading-ray-dalio?trk=portfolio_article-card_title
>These conditions now exist a) in the later stage of the short-term debt cycle (nine years in) when slack is limited and central banks are shifting from being stimulative to being restrictive, and b) in the later stage of the long-term debt cycle when debt and non-debt obligations (like pension and healthcare obligations) are high, interest rates are near 0%, and printing money to buy financial assets will have a reduced stimulative effect. This risky configuration of circumstances has occurred numerous past times, most recently in the late 1930s.
>As this is happening in the later stages of both the short-term and long-term debt cycles while central banks are tightening with the duration of assets long (because interest rates are so low), this is an environment in which we prefer to have a risk-off posture.
From the person who was short everything Europe at the start of the year.
Submitted October 13, 2018 at 01:01AM by Widerstand543 https://ift.tt/2OnxPwT
