Salient to Investors:

Ray Dalio at Bridgewater Associates said:

  • 2013 will be a game changer for the economy as investors reallocate money – currently getting very bad returns – after risks including Europe’s sovereign debt crisis receded.
  • Money will move into stocks and other assets, as well as into goods and services
  • Central banks will have to reduce the supply of money when spending increases, but a successful exit from 6 years of loose money is manageable.
  • China is in a different part of the economic cycle than the US, while Europe will have to contend with social and political pressures in 2013.
  • The fundamental law is we can’t raise debt faster than income going forward.

David Tepper at Appaloosa Mgmt, David Rubenstein at Carlyle Group are bullish on the US economy.

George Soros said the Fed will have to raise interest rates quickly to contain inflation once the economy shows signs of a stable recovery.

Jin Liqun at China Investment Corp said the printing press will have to slow considerably for people to have confidence in the dollar. Liqun said the US can achieve 2 percent growth.

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