By Yantoultra Ngui
SINGAPORE (Reuters) – Ray Dalio, founder of the world’s largest hedge fund, and Lim Chow Kiat, the boss of Singapore’s sovereign wealth fund GIC, expressed caution about the year ahead due to political risk and uncertain global growth prospects.
Despite these challenges, both Dalio and Lim reiterated their commitment to investing in China, highlighting the country’s importance despite its rising debt issues and geopolitical tensions.
Dalio, the founder of Bridgewater Associates, pointed to geopolitical concerns and the financial implications of climate change as key factors that could pose negative risks for global investors in the upcoming year.
“The surprises are more likely to be on the downside,” Dalio remarked at the Milken Institute Asia Summit 2024 in Singapore.
Regarding the U.S., Dalio noted the risk associated with a smooth transition of power, despite acknowledging the country’s positive attributes.
Likewise, GIC CEO Lim emphasized the need for a selective approach to investments, particularly in light of the market’s optimism around a soft landing and significant tech sector growth in the U.S.
Lim reaffirmed the U.S.’s importance as a key market for GIC, citing the country’s robust private sector and attractive investment opportunities.
While deal flows in China have been slow and growth expectations modest, Lim underscored GIC’s continued investment in the country, recognizing its status as the world’s second-largest economy with a wealth of entrepreneurial talent.
