Billionaire Ray Dalio predicts a new economic disaster and gives some clues on how to stay afloat


8 dic 2021 01:51 GMT

The investor anticipates in particular a major conflict between China and the US, which would be determined by misunderstandings between the two nations.

American Ray Dalio, billionaire founder of hedge fund Bridgewater Associates, warned that a new economic catastrophe looms on the horizon and offered some advice on how to ensure some financial stability if his prediction comes true.

“I believe that we risk a war with China. In large part, due to misunderstandings, “the investor said in a question and answer session that aired on December 3 on the Instagram account of CNBC Make It.

The opinions of the businessman were required on the occasion of the release of a new book of his, entitled ‘Principles for Coping with the Changing World Order‘, in which he argues, among other things, that US attempts to impose its values ​​on China may end in a backfire, details the middle.

That idea was later reiterated by Dalio in his account in LinkedIn. “I hope it lends itself thoughtful attention to this question, that mutual understanding increases and inclinations to fight diminish, “he stressed.

Speaking to CNBC Make It, Dalio admitted that he may be wrong in his predictions, but insisted that the onset of future economic crises is inevitable and that to confirm it, it is enough to see the historical patterns.

Recipes to cope with future recessions

According to the billionaire, one of the keys to dealing correctly with events in the future is to be vigilant. “If you take care, you don’t have to worry. And if you don’t take care, you have to worry,” he stressed during the interview last Friday.

Each one, he said, should assess their own financial risks to successfully deal with eventual crises. Earlier, in his book, he pointed to the physical place of work and home as one of the dangers to be taken into account.

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The work contains a ‘health index’ that classifies a dozen countries based on 18 factors, such as the burden of debt or economic output. With this, the reader is proposed to analyze risks and determine where they would like to move and invest.

On the other hand, the employer advises assessing financial risks in relation to the inflation rate and bet on a diversified portfolio in times of destabilization. In the current inflationary context in the US, it recommends maximum diversification, including physical assets such as gold or cryptocurrencies.

Regarding the latter, Dalio admitted in May that he maintains “a small quantity“of bitcoins in order to diversify their capital, despite their skepticism towards the world of cryptocurrencies in general.” I urge those who like bitcoin – or those who like gold – not to make a decision of all or nothing, “said the investor during the direct with CNBC.

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Billionaire Ray Dalio predicts a new economic disaster and gives some clues on how to stay afloat