15 September 2023
Billionaire investor Ray Dalio warned of potential issues in the global bond market, emphasizing the oversaturation of US debt. He highlighted that the US must offload large amounts of bonds due to soaring federal deficits, creating a worldwide concern. If bonds don’t offer sufficient real interest rates, investors might sell them, leading to rising interest rates. Dalio believes long-term bonds aren’t a wise investment. With $7.6 trillion in US debt maturing within a year, the cost of debt servicing could further increase rates.