Ray Dalio tells Charlie Rose this week that he’s operating under “three big themes”:

  1. There is a deleveraging going on resulting in economic contraction.
  2. Monetary and fiscal policy are greatly overextended. “We’re out of ammunition.”
  3. Political, partisan conflict is certainly not helping and may be exacerbating the situation.

The rest of the conversation is a must watch for investors and traders alike. Click the image below for the video:

My favorite quote from the interview:
“We all should recognize that we could be wrong. The way I get to success, it’s not what I know. It’s knowing what I don’t know or worrying that I’ll be wrong that makes me find people to criticize my view. If you can stress test what I’m saying I’ll learn.”
Hat tip, Paul Kedrosky