The Globe and Mail

Go to the Globe and Mail homepage

Jump to main navigationJump to main content

Ray Dalio speaking at the 2012 World Economic Forum in Davos, Switzerland.
Ray Dalio speaking at the 2012 World Economic Forum in Davos, Switzerland.
(Anja Niedringhaus/AP)

A hedge fund legend warns Canadian economy faces ‘significant risk’

One of the world’s biggest and most respected hedge funds predicts that Canada’s economy has a tough decade ahead of it.

Ray Dalio’s Bridgewater Associates says the country’s economy is just beginning a tough period of rebalancing.

The call is notable for who is making it. It’s a fairly common belief that this country, after a long boom, is likely to go through a retrenchment as consumers cut spending to pay debt, and that there are also risks posed by the long surge in housing prices. But when Mr. Dalio’s firm says it, such predictions take on new weight.