Dalio: It’s a good environment, but...

Ray Dalio: Monetary policy effectiveness waning

Ray Dalio thinks the economy is good for now, but there could be trouble ahead as monetary policy becomes less effective in the developed world.

"It's a good environment," the founder of hedge fund firm Bridgewater Associates said Thursday at the DealBook Conference in New York.

He noted Bridgewater was still holding bets on the appreciation of U.S. stocks.

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But in a year or two, Dalio noted, the "effectiveness of monetary policy will be less" and that could lead to less buffer against an economic hit.

"Whenever there might be a need for easing of monetary policy, we're going to be in a situation in which the effective ability to ease is very limited. And that's at the same time that asset prices will be comparatively high."