Cohn exit from White House would be ‘terrible’ for markets: Ray Dalio

Hedge-fund billionaire Ray Dalio said it would be “terrible” if former Wall Street exec Gary Cohn left his White House adviser position, and would be “bad” for the markets.

Today’s economic environment is similar to the investor sentiment around 1937, signaling the possible beginning of a tightening, billionaire Ray Dalio, chairman and chief investment officer at investment firm Bridgewater Associates, said at CNBC and Institutional Investor’s Delivering Alpha conference in NY on Tuesday, Sept. 12.

The optics would be negative, Dalio noted, saying a Cohn departure would undermine the progress of future reforms and make it tougher to recruit people to work for the Trump administration. His prospects have grown cloudy after he publicly criticized remarks the president made in the wake of racially charged violence in Charlottesville, Virginia.

Dalio described Cohn as someone who is open-minded, with an “ability to draw on the best thinking”. Earlier that month he recommended investors place as much as 10 percent of their assets in gold as a hedge against political and economic risks. It’s down 2.4 percent this year through August, according to a person familiar with the matter.

Dalio also said that Cohn is a capable of being Fed chairman.

There’s a lot of tension in the bottom 60% of the economy, Dalio said.

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