SINGAPORE — Many investors have cut their exposure to China in 2020. But one billionaire hedge fund manager has a strategy that begins with “balance.”
Ray Dalio told CNBC’s “Street Signs Asia” on Wednesday that the way to play the Chinese market is to first build a diversified portfolio.
“That means to achieve the right kind of balance of assets in China,” he said. “Our approach is, we call it all-weather approach, it’s a certain balance in which you achieve balance without lowering the expected return. From that, you want to make the tactical moves.”
Dalio said that the Chinese yuan could see greater usage outside China as the U.S. dollar and other major reserve currencies are hit by a weak economy. China’s interest rates are attractive, he said, and the development of its capital markets has helped make the exchange rate for the yuan stronger.
Ray Dalio, billionaire and