Ray Dalio's message on China: don’t sweat it.
In a July 2 Bridgewater Daily Observations note reviewed by ValueWalk, Ray Dalio (plus Bob Prince and other BridgeWater analysts) downplays concerns over the Chinese stock market’s plunge.
Ray Dalio's argument on China's market movements
He makes the argument that China’s market movements are not significantly reflective of, or influential on, the Chinese economy, nor are they extremely impactful on investors in China and abroad. Instead, what is currently happening is typical for a newly developing equity market that is dominated by what he calls “unsophisticated speculators.”
He writes:
A lot of people think that the direction of a stock market is indicative of the direction of an economy. That is because a) the prices of...
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