Ray Dalio, founder of Bridgewater Associates, and Lim Chow Kiat, CEO of Singapore’s sovereign wealth fund GIC, expressed concerns over political risks and global economic uncertainties for the year ahead. Speaking at the Milken Institute Asia Summit 2024 in Singapore, both highlighted geopolitical tensions, rising debt, and climate change as significant challenges.
Despite these headwinds, Dalio and Lim emphasized their commitment to investing in China. Dalio noted that geopolitical risks, particularly the cost of climate change, would likely have a negative impact on financial markets globally. He also cautioned about political instability in the U.S. regarding the orderly transition of power.
Lim, reflecting on GIC’s cautious investment approach, said the U.S. remains a key market, comprising 39% of GIC’s portfolio, but noted a need for selectivity due to current valuations in sectors like technology. He also reaffirmed GIC’s long-term focus on China, despite the slow pace of deals and muted expectations for growth.