Ray Talio is the founder of the Bridgewater Associates Hedge Fund, which is now the largest in the world, according to LinkedIn News. In an interview with this YouTube channel, the investor said that the way people stand and behave will lead to more serious conflicts and that the United States is now more divided. The Biden government declares that it wants to unite the nation, but the investor hopes that moderate politicians from Republicans and Democrats will find their way to real integration. An alternative would be to form a third political party, where moderate politicians from both parties would come together. It is difficult to take such positions within existing parties because it is considered a weakness. What does Talio think about further developments in America and American politics?
The investor addressed the issue of responsible corporate behavior, on the one hand there are positive efforts, but on the other hand it is sometimes difficult to understand such a concept of responsibility. For example, he gave to a company trying to increase productivity and is currently facing an epidemic that could lead to the automation of its operations. In his view, this is an understandable step, but at the same time such behavior of companies leads to a depth of income inequality and inequality in wealth. Talio believes it is essential to have an appropriate policy in place to address such issues in the community. However, so far, as far as they are concerned, he is only asking for good intentions and some concrete action here and there, but no strategy to address similarly large structural changes in the economy and society as a whole.
Talio was also asked about the behavior of some retail investors organized on the Robinhood site and social networks and focusing on stocks that have significant short positions with some institutional investors. Talio noted that he traded stocks as a teenager and that it would be nice if people at this age had experience in the market. Now the wave of buying of some shares by retail investors has pushed some investors out of positions, speculating that stock prices will fall and causing some tensions in settling the trade.
A story related to all of this, according to which ordinary people are exploited by the rich, and Talio, in his words, sympathizes with those who go after his own. On the other hand, sometimes it seems to him that it is a “call to blood” and it is necessary to think about the things that the whole thing really shows us. “What’s the sign … It’s like a show on Netflix, we’ll see, there’s blood in it,” the investor added. According to him, at a time when there is a big difference in wealth in society and the economy is in decline, there are significant tensions.
Real Estate and Bitcoin
In normal times, property ownership is a “big deal”. It is a kind of savings, which allows the owner to adjust the house to his liking, choose where the children will grow up, says many. However, he said flexibility would be more important for some, as it restricts ownership of real estate, rather, it would be more in the case of rental housing. Overall, the investor did not express any strong opinion for or against the ownership of the property, which is also true in the case of Bitcoin.
According to Talio, when people read his statements and analyzes, he notices that he chooses from them what fits their opinion. So supporters of Bitcoin choose positively what Talio wrote about this digital asset. Opponents of bitcoin choose phrases that support their point of view. According to him, Talio added that Bitcoin is a great invention, but there are things like its big instability and the negative intervention of regulators.
“I am afraid that we are in a situation where there is a classic debt and an increase in the money supply,” Talio continued, adding that it is important not to forget the differences between real and financial assets at a time like this. The real ones are houses, cars and other similar things. For example, financial assets are a claim to future corporate profits. Historically, according to the investor, the cycle repeats itself when the amount of financial assets increases and decreases again compared to the size of the actual assets. Tensions arise when people try to transfer more financial assets to real assets.
Talio said it all about Bitcoin, and continued to call the property “alchemy.” It was created, and then others believed it, and those who created it became rich, and eventually Bitcoin could actually become currency. “It’s a matter of trust … it’s basically an alternative to gold, just digital,” the investor said, adding that he had no value for any money.
If he had been in government …
At the end of the interview, Talio was asked what he would try to implement if he sat in the new US government. To which he replied that he was not concerned about what the government had implemented, especially whether it was based on a discussion between the two sides and whether it would increase productivity. “I have my ideas, for example, that education is a great investment,” Talio added, adding that the most important thing is political agreement and politics that benefits the majority.
Zdroj: LinkedIn News, Youtube