Askume, Singapore, Sept 18 – Ray Dalio, founder of the world’s biggest hedge fund, and Lim Chow, head of Singapore’s sovereign wealth fund GIC, said kiat is becoming more cautious about the year ahead.
However, both companies said on Wednesday they remain committed to investing in China despite challenges such as growing debt problems and geopolitical tensions.
Dalio, the founder of Bridgewater Associates, said geopolitical issues, the cost of climate change and its impact on financial markets are among the factors that could pose downside risks for global investors next year.
“Surprisingly, the negatives outweigh the positives,” Dalio said at the 2024 Milken Institute Asia Summit in Singapore.
Dalio said that although many positive things are happening in the United States, there are still risks in the orderly transfer of power.
GIC CEO Lam said Singapore’s sovereign wealth fund should be more selective in seeking investment opportunities rather than investing in the broad market.
“The market has priced in a soft landing, which is great. It’s also priced in significant growth in the tech sector, so we’d be more cautious in that regard,” Lin said, referring to the United States, which is the biggest single country holding 39% of its portfolio.
Lin said the United States will remain a key market for GIC regardless of the outcome of the upcoming election. The country has a large private sector and “there are a lot of high-quality assets for us to invest in,” he said.
Lin said GIC would continue to invest in China despite “extremely slow” transaction volumes and low market expectations for China’s economic growth.
“It may take some time, but as the world’s second-largest economy with great entrepreneurs, we cannot give up that position,” he said.
