Davos WEF
Davos WEF

Ray Dalio questions which Trump we're going to get: 'Thoughtful' or 'reckless'

Dalio: This will rekindle market's 'animal spirits'...

Ray Dalio, founder of hedge fund giant Bridgewater Associates, told CNBC on Wednesday it's unknown whether President-elect Donald Trump's pro-business agenda will be executed properly, but "there's an optimistic possibility."

Appearing on "Squawk Box" from the World Economic Forum in Davos, Switzerland, Dalio said only time will tell whether Trump's approach to policy will be "aggressive and wise and thoughtful and calculating or ... aggressive and reckless."

"With the calculations done well, it can be extremely powerful," said the chairman and co-chief investment officer of Bridgewater, which has $160 billion in assets under management.

"If it didn't take place, then the malaise and the impatience would produce even worse results," he said. "We needed a revolution; I mean, in a sense we need a reinvigoration and that kind of revolution."

Investors will learn a lot over the next few months, said Dalio, adding that he's optimistic about Trump's Cabinet selections.

"But there's also a time to know not to take a big bet. You don't always have to have a big bet," he advised. "The way I've done best is, 'Know what I don't know.' It's not because what I know," he reflected.