BoJ to ease further, India 'to prepare for the worst' - Ray Dalio

FXstreet.com (Barcelona) - Hedge fund manager Ray Dalio, whose Bridgewater Associates owns about $150 billion in assets - one of the world's largest hedge funds - said on Friday the Japanese economy will need another round of quantitative easing to foster further economic growth, while sending a warning message to policy-makers from emerging markets, noting they a crisis is likely.

According to Dalio: "The effects are going to wear off, they are going to have to do another big round of purchases."

Referring to emerging markets, Dalio, cited by Reuters, said it will not be an "an attractive place" to invest in the near future "given flows and pricing", adding that emerging markets have to confront "a major balance of payments problem" that will eventually lead to significant problems. He showed little doubt about the tough times ahead for emerging economies, saying "we are going to have the emerging market crisis."

Especial emphasize was put in India, with Dalio noting the country should "prepare for the worst" since it has been one of the biggest beneficiaries of foreign capital flows that are already bypassing emerging market equities, he added.