"The Times Ahead Will Be Radically Different" - Ray Dalio
Ray Dalio warns us in his new book that times have changed and we are facing a new paradigm.
One of the best investors of all time and creator of the "All Weather Portfolio" warns us in his new book that times have changed and we are facing a new paradigm.
"I believe the world is changing in big ways that haven’t happened before in our lifetimes but have many times in history, so I knew I needed to study past changes to understand what is happening now and help me to anticipate what is likely to happen next. I shared what I learned in my book Principles for Dealing with the Changing World Order." - Ray Dalio
During more than 50 years of macroeconomic investing, if there has been one key lesson, it is that all destabilizing events, even if they have not occurred before, have an eminently cyclical effect on a large scale.
This is a huge list, but one that has been magnified in recent years by the high degree of globalization we are experiencing in the world. The war in Ukraine, the tariffs between the USA and China, the evergreen boat, covid, Brexit, etc. The list, as you can see, is very long, and undoubtedly, no one expected any of these events. Nevertheless, roughly speaking, all these events fall within a constantly repeating 6-sign framework:
Interest Rates Hit 0%: central banks have had to lower their interest rates, this causes money to be given away and FIAT money to lose its value.
Money Printing: unprecedented.
Financial Crisis: about to happen.
Wealth Gaps: 1% of the richest people in the world control 85% of the world's stocks, something unprecedented.
Internal Conflict: radicals are at each other's throats.
This has made Ray Dalio study whether this is something typical of the last few years or if, on the contrary, it has happened more times throughout history. For this, he has taken a time frame of 500 years, and what he has discovered will make you break your head about your vision of the current situation.
Ray warns us that it is not easy to protect yourself in such a complex world, and very few people will be able to keep their money safe.