Stocks, bonds fairly valued: Bridgewater's Dalio

Hedge fund manager Ray Dalio painted a Goldilocks picture for stocks and bonds against the backdrop of massive asset purchases by central banks, saying: "They're not too high, they're not too low."

"We have a world in which we have an enormous amount of liquidity," Dailo said in a "Squawk Box" interview Wednesday from the World Economic Forum in Davos, Switzerland. "Liquidity means people want to buy financial assets. So we build up the prices of financial assets. ... They seem to be appropriate."

(Read more: Matt Damon's not acting. There's a water crisis)

Looking at the U.S., he said the Federal Reserve's quantitative easing bond buying program has pushed financial assets quite a bit, and as a result, future expected returns went down a lot.

As for the economy, "we are in the middle of the short-term debt cycle. In other words, you're out of the recession and you're not into tightening," said Dailo, founder of Bridgewater Associates, which has about $150 billion under management. "Those middle years are kind of the boring years."

(Read more: Davos live blog: Getting down to business)

By CNBC's Matthew J. Belvedere. Follow him on Twitter @Matt_SquawkCNBC.

Introducing Morning Squawk: CNBC's before the bell news roundup

Sign up to receive Morning Squawk in your inbox each weekday › Sample

Davos: Top interviews and more


Latest Special Reports

World Economy