Ray Dalio Sees 10 Year+ Deleveraging Period With Money Printing; Soros, Gartman..

Hedge fund manager Ray Dalio, founder of Bridgewater Associates, was interviewed by The New Yorker and at the end of the article Dalio gave some pessimistic views on currencies and economic growth going forward. He thinks "late 2012 or early 2013 is going to be another very difficult period". But what does Dalio think about the reflation trade going forward (equities and commodities)? This is important...

Now that the slowdown appears to have arrived, Dalio thinks it will be prolonged. “We are still in a deleveraging period,” he said. “We will be in a deleveraging period for ten years or more.” 

“There hasn’t been a case in history where they haven’t eventually printed money and devalued their currency,” he said. Other developed countries, particularly those tied to the euro and thus to the European Central Bank, don’t have the option of printing money and are destined to undergo “classic depressions,” Dalio said.

Read the full story at The New Yorker

In other macro hedge fund news, I read an article at Bloomberg that said Soros' Quantum Endowment Fund had 75% in cash in June.

"In mid-June, Anderson told his portfolio managers to pull back on trades as the hedge fund’s losses hit 6 percent for the year, according to two people familiar with the New York-based firm. As a result, the fund is about 75 percent in cash as it waits for better opportunities, said the people, who asked not to be identified because the firm is private"

Read the full article at Bloomberg

Lastly, Dennis Gartman of the Gartman Letter was interviewed at Benzinga Radio this week and talked about "the possible dissolution of the European Union and the current disadvantages with buying gold among other things." Listen to the interview at Benzinga.