dalio to that extent, ray made the point. is the end of central bank giving its money. let's have a look at the board. he is saying the direction of policies are reversing. our responsibility is now to keep on dancing, but closer to the exit. keep our eyes on the tea leaves. i think you summed it up, which is you know have several warning that their free money is coming to an end. kully: we have been here before. when the fed started down this path, we thought they left it's too late. isn't this a great time for most of the central bank to go down the street? the top economies are growing at the same time. this is a great time to remove some of the stimulus. when those economies do eventually turn, they have other instruments in their back to deal with it. manus: the issue and conundrum is this. unemployment, average hourly earnings. this is a global phenomenon. it is not just the fed. the average hourly earnings is one measure of wage growth. if you look at the wage growth tracker, which of the report 4% wage growth, i wonde

ray dalio, you went through his latest note, and he is not pronouncing it a route by any means eitheroes talk about the impact on equities. maybe not impact, but the idea, while the bond market is not being routed, equity investors need to be extra careful. richard: that's an interesting point to make. pointk what ray dalio's is, the error of super accommodative monetary policy is maybe coming to an end. your initial thought is bond yields will go higher, and that's true. but the point he is making, this could have a bigger impact on equity markets. investors have to be careful about the year of easy money ending, and that, as a driver for equity performance, is coming to an end. if that happens, you may see a switching into bonds. if those yields inch higher, that will become even more attractive. the bond market may not be as responsive to the end of the easy money era as equities are. that is something to watch on across as a basis. vonnie: when that mean then that we would get back to the old, traditional correlation where if equities go up, bonds tend to go down? richard: i think

what is interesting about ray dalio, he joins a slew of these bond fund type people, macro managers,ill gross, you have of course stanley druckenmiller, a lot of folks out there echoing some concerns about what's happening in the markets >> yeah. let's get become to jobs friday. the u.s. labor market will be front and center today on wall street the june jobs report is out at 8:30 a.m. eastern. forecasts call for an increase of 174,000 in non-farm payrolls, that's up from 138,000 in may. the unemployment rate is expected to hold steady at 4.3%, which is a 16-year low average hourly earnings, this is so closely watched today by the fed is forecast to rise 0.3% >> that wage growth number will be key for sure. >>> in corporate news, berkshire hathaway saying they will purchase oncor electric. the deal is valued at 11.3 billion. the unit of warren buffett's berkshire hathaway has agreed to it texas regulators blocked two earlier attempts to sell oncor to two other utility companies. >>> the argument here is that berkshire will be able to get this deal done because they don't pay a divide

sara, you can even say what ray dalio is saying they have been taking the syringe away. we've been pumping the patient with steroid injections now for years, and when you start to take the medicine away, what happens is that patient goes through withdrawals. we're going to start seeing the global economies go through some volatility that's the withdrawal part of it it now the bottom line though is that what we're looking at is the situation, and rick santelli has been talking about it time and time again, that you've got one-third of the sovereign fed controlled by the federal banks. this is a ma nip late market if we had one-third of any market controlled by any entity we would be talking about it as if it was a monopoly at some point so what we really need to do suns that this fed is now draining the system. the central banks around the world are ready to drain, and if that's taking place, then we have to be prepared for it, an as ray dalio was saying, we've got to be very, very close to the exits. look, you know, this market has gone up 20%. you can't go broke taking

to borrow the phrase from ray dalio, there is the beautiful normalization.egulation, all sorts of stuff that promotes growth. therefore, you get a beautiful normalization. alternatively, you get a disorderly normalization. that is a political code. that is what makes this period of the market so hard. when you look at the destination, you will have to make a political call and not an economic call. jonathan: let's try to make one. you have written about it in the past. juncture is not a beautiful place. but we are pretty much at the t junction now, aren't we? we are getting closer. >> you see this from everything we have talked about. all of the improbable's that have become a reality. we are getting closer. the system is telling you that it is unstable and it is likely other. one way or the i think that on the politics, unfortunately, it speaks more to the left turn than the right turn. the combination of gridlock and distraction is delaying the implementation of the social policies you need for the right the turn toward higher, more inclusive glow -- growt

ray dalio discussing the impact of the end of easy money, saying the direction of policy is reversingty is to keep dancing, the closer to the exit. and jimus, alan krueger paulsen. global banks are worried about high risk tolerance, but that shakeup that has happened in treasuries, bunds, yields, what do you make of that? jim: i think we are turning the corner. this has been a bull market where the least risk assets have been some of the best performers throughout. trim therue in bonds, stock market. but i think in the balance of the recovery, we are going to shift to where risk assets do better relative to risk averse. we are starting to see that here in the last year, where in the stock market, for example, the favorable dividend aristocrats have underperformed a fair amount. we are starting to see more cyclical sectors take leadership. growth andontinue if interest rates dominate in the balance of this recovery. i think that is what we are seeing and probably will deal with. jonathan: if you asked someone about yesterday's big move, they may pick a soft french auction. europeanou t

stories we're watching the manager of the world's biggest hedge fund sounding off on monetary policy ray dalio says the actions of global central bankers suggests the low rate cycle is ending soon he said our responsibility now is to keep dancing but closer to the exit and with a sharp eye on the tea leaves >> you remember the last time somebody talked about dancing. >> that bugs me. dalio said he was less concerned about a debt bubble because of balance sheet deleveraging. >>> the department of homeland security and fbi says hackers are targeting nuclear power stayings and other energy facilities the attacks have targeted people who have direct access to critical systems that could cause explosions or spills of dangerous material officials said there was no indication of a threat to public safety as potential impact appeared to be limited to administrative and business networks not operating systems >>> berkshire hathaway saying it will purchase oncor electric company. the deal puts oncor's equity value at 11$11.3 billion. berkshire hathaway has agreed to buy reorganized future energy holding