Ray Dalio, famed investor and the founder of the world’s largest hedge fund, Bridgewater Associates, believes the US and the UK could be heading into “very, very dark times.”
Sharing his views on the “Diary of a CEO” podcast, Dalio sounded cautious about the trajectory of the two nations. He pointed out that a repeating 80-year cycle suggests that the world is entering a time of major conflict and turmoil, both globally and within countries.
“The UK government has a debt problem. The country has been in decline since the war, said Dalio, underscoring that the financial stress is connected to intense internal conflict.
US’s internal political landscape is polarised
While the US has a culture of entrepreneurship and innovation, it, too, has a significant debt problem, said the eminent investor. Moreover, Dalio believes the US’s internal political landscape is polarised by wealth and values gaps.
“The US is very much a big picture. It definitely has the debt-money economy issue and internal conflict problem. Democracy is at risk,” Dalio said on the podcast.
He further stated that the US is in a conflict with China and its allies, which will determine the future of the world.
“The US and China are in a technology competition. The others are not really in the game. The winner of the technology war will win all wars, including economic war and geopolitical war,” said Dalio.
Dalio said it is more than conceivable that the US could no longer be the dominant global power 50-100 years down the line.
“If you look at the probabilities, the paths and the symptoms, there are a number of challenges that the US is facing,” Dalio said.
Dalio said one must understand the situation and its risks. He uses the Chinese saying, “a smart rabbit has three holes,” to illustrate the importance of being able to move to better places and away from bad ones.
He also empathises with building financial strength through finding a career that aligns with one’s passion and is financially viable, being mindful of spending habits, and saving by setting money aside.
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Disclaimer: This story is based on the Diary Of A CEO podcast and is for educational purposes only. The views and recommendations expressed are those of the expert, not Mint. We advise investors to consult with certified experts before making any investment decisions, as market conditions can change rapidly and circumstances may vary.
