What really happened according to Ray Dalio

Ray-DalioRay Dalio, the legendary investor, is out with notes on the last ECB meeting and its effects.
He claims that the moves were mostly because of positioning.
The man who predicted the global financial crisis in 2007 believes that Draghi is doing the right moves to reach the 2% inflation target.

Here are his words:

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“There is a saying in the markets to ‘buy on the rumor and sell on the news‘. That’s what happened. There was a lot of buying of dollars (shorting of euros) on the rumor that there would be more aggressive movement by the ECB. There was going to be selling on practically any announcement. So, the markets’ reactions reflected more about the positioning and erratic behavior of players than the inappropriateness of ECB monetary policy.”

He adds: “Draghi has taken, and will continue to take, adequate actions to reach the 2% inflation target. We expect that he will do that in an orderly and measured way, which is appropriate, all things considered. He is operating in a political system that pressures him from both sides – both from = those that say that he is moving too far and too fast (most notably conservative Germans) and from those who have wanted him to move much faster (which we are in the camp of). But he has proven to have balanced these pressures in order to do what’s necessary. At all key moments, he has done the right things and the whole world is better off because of it. By now the world should know, don’t fade Mario Draghi.”

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