From Bloomberg:

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Ray Dalio, the head of the world’s largest hedge fund, said investors should expect low returns and volatile financial markets, but not another financial crisis like the one in 2008.

“I’m not bearish on stocks,” Dalio said in an interview Thursday with Bloomberg Television’s Erik Schatzker from Austin, where he’s attending a conference hosted by the University of Texas Investment Management Co. “I’m not expecting something like 2008 because 2008 was a debt crisis.”

While there are “asymmetric” risks to the downside, asset prices will correct to a point where risk premiums return and investors come back, said Dalio, who predicted that equities will probably return about 4 percent in the long term. The issue, he said, is whether the slowdown in markets will have negative repercussions for the economy at a time when central bank…