As tensions might drag over the next decade, investors have to learn to operate under prolonged uncertainty, said Warburg Pincus' Charles Kaye.World Economyread more
Billionaire investor Howard Marks, the co-chairman of Oaktree Capital, predicts there won't be a recession in the U.S. for another two years.US Economyread more
Network officials also said voters should expect more of a Koch focus on grassroots activism throughout the 2020 election cycle.Politicsread more
One person was killed and five others wounded on Thursday in a shooting on the streets of Washington, D.C., not far from the White House, police said.U.S. Newsread more
Stores are extending hours and cities are spending on light shows as China tries to encourage consumers to spend more money at night.China Economyread more
New research suggests fewer girls pursue careers in STEM — science, technology, engineering and math — because they're better than boys at reading.Closing The Gapread more
Stocks in Asia Pacific edged up in Friday afternoon trade as a series of developments overnight on the U.S.-China trade front dampened hopes of a deal being reached between...Asia Marketsread more
GM's usage of temporary workers, potential closure of plants and health care contributions remain major sticking points, according to people familiar with the talks.Autosread more
In a room full of avowed capitalists, policies that sound to some like socialism are bound not to go over well.Delivering Alpharead more
Trump has criticized Facebook numerous times since becoming president, most recently posting on Twitter that the company's proposed digital currency, libra, will "have little...Technologyread more
Republicans and Democrats have long since separated themselves by ideology, leaving each more uniformly conservative or liberal than ever. And now a new data analysis by the...Politicsread more
There's no obvious sign pointing to a big economic decline unless the Federal Reserve gets too aggressive in raising interest rates, Bridgewater Associates founder told CNBC on Tuesday.
"There's no compelling reason to tighten monetary policy," the billionaire said on "Squawk Box." "The Fed's assumptions in terms of how employment rates would lead to inflation were clearly wrong. They don't understand that. What is the problem?"
Dalio believes the Fed won't unwind its $4.5 trillion balance sheet, or portfolio of assets, as quickly as current expectations. The central bank is expected to take nearly 4½ years to get down to around $2.5 trillion.
Reducing the balance sheet is viewed as a slight negative for economic growth, a bit worse for stocks. Overall, however, expectations are for only modestly negative effects.
The Fed began its two-day September meeting Tuesday. When the gathering ends, central bankers are expected to announce the beginning of the unwinding of the balance sheet.
A third rate hike this year is not expected this month, while the market odds for a December increase are about 56 percent, according to the CME FedWatch tool. CNBC's Fed Survey of 42 Wall Streeters found that 76 percent believe the Fed will raise rates in December.
Dalio said the Fed finds itself in a precarious position because there are parallels between the current economic environment and 1937, when the Great Depression intensified.
The market crash of 1929 was precipitated by a debt crisis, just as the 2008 financial crisis, which caused stocks to plummet, he said.
"Interest rates hit zero [back in 1929]. And then the central banks buy a lot of assets, expand their balance sheets, print a lot of money to make up for credit. We have a rebound from '32 to '37. And the markets go to highs and everything is good," Dalio said. But in 1937, he added, there was a tightening and the wealth gap "was analogous" to today. "It's a delicate period time [now]."
Dalio said he's not predicting that history will repeat itself. "My point isn't that that is going to happen," he said, while stressing the Fed just needs to be "cautious."
The hedge fund manager also addressed the unusual corporate culture of an "idea meritocracy" at Bridgewater, saying it helps bet correctly against the consensus opinion in the markets.
Collective thinking works, Dalio said. Getting everyone on the same page is key but it must come through testing theories for why they might be wrong, he added.
Decision-making at Bridgewater is data driven, Dalio said. He described his practice of analyzing situations and writing down the criteria around them, saying he wants to be able to lean on tangible past experience when the same types of situations present themselves.
Last week, at the CNBC-Institutional Investor conference, , "the greatest tragedy of mankind — or one of them — is that people needlessly hold wrong opinions in their minds."
Bridgewater, the world's largest hedge fund with about $162 billion assets under management, is known for strong returns and in which employees rate one another's credibility on a number of dimensions, and everyone can see the ratings. Votes by employees with higher believability ratings are given greater weight in decision-making.
Dalio started Bridgewater out of his two-bedroom apartment in New York in 1975. His ascent to becoming a titan of Wall Street was not without setbacks, however, as he describes in his new book, "Principles: Life and Work."
about how he actually went broke eight years after he started Bridgewater, but he said the experience was "one of the best things that ever happened to me because it gave me the humility."
Bridgewater's Pure Alpha II fund has had an 11.9 percent annualized return since its inception in 1991. So far, in 2017, it's down 2.5 percent.
The All-Weather fund, designed to perform in all market conditions, is up 8.5 percent in 2017. It has had an 8.1 percent annualized return since it started in 1996.
, Dalio completed a seven-year management transition, stepping down as co-CEO. The 68-year-old remained chairman and kept his role as co-chief investment officer.