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


  • Argentina, Buenos Aires

    The global elite have stumbled on an emerging market sell-off that served as a reminder of the risks the global economy still faces.

  • A logo sits on a sign at the World Economic Forum in Davos, Switzerland, on Thursday, Jan. 23, 2014.

    Sure there was talk of women's issues at Davos but this female CEO says one of the questions she got asked a lot was: Are you here as a spouse?

  • The World Economic Forum logo in Davos, Switzerland.

    Here’s a five-point reality check for why people need to stop bashing Davos as an irrelevant gathering of the elite. By the executive director of Wharton's Risk Management Center.

  • Marissa Mayer

    Negotiations over the U.S. debt ceiling are still one of the biggest risks facing the world, according to Yahoo CEO Marissa Mayer.


Latest Special Reports

  • An era of innovation dominated by secretive corporate labs is ending. Time for you to help crowdfund the future.

  • CNBC and Institutional Investor host the 4th Annual Delivering Alpha Conference.

  • The boom in America’s energy independence has major implications on the economy, foreign policy and the environment.