Read what Ray Dalio's hedge fund believes about populism
Yesterday's daily note from Bridgewater focused on populism. They studied 14 past populist leaders in 10 different countries and unveiled the "archetypical populist template" or "populist playbook".
They argue that the earliest signal on how a populist politician will develop is how they handle conflicts. Will they ramp up confrontation and rhetoric, or show flexibility. Or as Bridgewater puts it, "whether the opposing forces can coexist to make progress or whether they increasingly "go to war" to block and hurt each other and cause gridlock."
In terms of similarities and what to invest it, "Classic populist economic policies include protectionism, nationalism, increased infrastructure building, increased military spending, greater budget deficits, and, quite often, capital controls," they write.
It also includes extensive profiles and economic backdrop of a dozen well-known populists. Read it here.