‘A number of countries have done a much better job of dealing with the virus without inflating their budget deficits and printing money.’

That’s Bob Prince, co-chief investment officer of the world’s largest hedge fund at Bridgewater Associates, explaining to Bloomberg in a recent interview why the U.S. is looking at “severely” limited economic growth even after the pandemic.

Going forward, he said, fiscal policy will continue to be the main source of stimulus, which will only serve to fuel the mounting pile of debt and put pressure on exchange rates. This is a problem around the world, too, but it’s more acute outside of Asia, according to Prince.

“Global investors tend to be very Western-centric,” he said. “A number of countries have done a much better job of dealing with the virus without inflating their budget deficits and printing money. “

Prince explained that China’s economy, for instance is “much closer to normal,” as are asset prices in much of Asia, which is something for investors to keep in mind.

“There is a substantial economic divergence between East and West,” he said. “As investors, you shouldn’t let yourself be completely locked into the West.”