Nov 13 (Reuters) – You can’t beat the market but the market
is probably going to slap you around a bit.
That’s the upshot from hedge fund guru Ray Dalio, who thinks
investing alpha, or outperformance, will be in short supply in
coming years. What’s worse, he sees equity returns, sapped by
years of QE, as only averaging about 4 percent a year for a
decade, with no diminution in volatility.
It’s enough to turn an investor to another of Dalio’s
Dalio, the founder of $120 billion hedge fund firm
Bridgewater Associates, thinks the Fed is getting diminishing
returns from its bond buying.
“It is working with a consistently decreasing effect and
will work with even less effect,” he told a conference sponsored
by The New York Times. (here)