We Love Animals
Lifestyle

72-Year-Old Billionaire On Forthcoming Economic Disaster And 2 Tips For Investors

Ray Dalio, 72, founder of the world’s largest hedge fund Bridgewater Associates, is warning of another impending financial crisis and offering advice to prepare for the future.

Source: Reuters

The multi-billionaire foresaw the 2008 financial crisis. He then predicted that the US economy would see stressful financial conditions for many years due to the Covid-19 pandemic.

Now he is warning of another impending economic disaster and offering advice to prepare for the future. “I think we’re at risk of a war with China. Largely due to misunderstandings,” Dalio told CNBC.

Dalio noted that his prediction isn’t a fact. He had also made wrong predictions in the past. But he also said a future disaster is inevitable, given what has happened over the past 500 years.

In other words, if the upcoming US-China conflict doesn’t affect the economy, then there’s another problem. This is why Ray Dalio thinks disaster is near and offers 2 tips for future preparations.

Reasons Dalio believes for a worse outcome of US-China trade war

Source: Getty Images

In his new book, “Principles for Dealing with the Changing World Order,” Dalio writes that US’s attempts to “Americanize” China and the culture of this country can backfire and lead to a conflict.

This could further escalate the US-China trade war. Trade tensions between the two countries began with the Trump administration in 2018, leading to US companies cutting wages, reducing profit margins and increasing consumer prices.

Moody’s research indicates that the trade war cost the US at least 300,000 jobs in its first year alone. In 2020, the Federal Reserve Bank of New York found that the trade war has cost American companies about $1.7 trillion in market capitalization. Ray Dalio expressed hope that the US and China would stay away from the brink of conflict.

Tip #1: Financial risk assessment

Source: Getty Images

Whatever happens, Ray Dalio suggested a simple rule for approaching future change: If you worry now, you won’t have to worry about the future. And vice versa.

Anxiety prompts each person to scrutinize their own personal risks and encourages action, he said.

For example, “places to live” is also a type of risk. In Dalio’s book, he mentioned the “Health Index”, which evaluates more than 10 countries based on 18 different factors such as debt burden, military strength and economic output. This index helps readers assess risks and form strategies where they live and invest.

Similarly, Dalio also advised investors to assess financial risk in inflation-adjusted terms rather than dollar terms. But that doesn’t mean people should just choose other investments over savings or vice versa. Amid the turmoil, Dalio says emergency savings should be backed by a safe and diversified portfolio.

Tip#2: Save and diversify your portfolio

Source: Getty Images

Dalio’s first step to a strong portfolio is to evaluate your current investment strategy. Think about how many weeks you can last with your current finances if you lose your job. Dalio points out that this always helps to find the worst-case scenario and avoid letting yourself into it.

Be sure not to “put all your eggs in one basket”, he stressed. He recently told CNBC that cash is no longer a safe investment as inflation has hit a 31-year high in the US.

Instead, he advises building a portfolio as diversified as possible, from bonds to gold. Portfolios can even include digital assets like cryptocurrencies. In May, Ray Dalio told CoinDesk that he personally owns a “small amount” of Bitcoin, despite his longstanding criticism of the cryptocurrency. The reason he gave was for the purpose of diversifying his portfolio.

H/T: cnbc.com

Related posts

WWII War Hero Fulfills His Promise To Granddaughter: Walk Her Down The Aisle Before He Passes Away

Margot Nolan

Long-Lost Prehistoric City Found Underneath The Surface Of Egyptian Pyramids

Larry

Explore Funniest Moments That Make A Virgo Confused

Margot Nolan

Amusingly Accurate Memes That Speak Out Taurus’ Mind When They Are In Love

Olivia

Rude Young Man Tells Lady To “Shut Her Baby Up”, Then His Father Steps In

Daniel

Cat Shows Up At Neighbor’s Door Daily Looking For Her Dog Friend Who Was Gone For Good

Olivia

Check Out Scorpio’s Personalities With 15 Cute Memes With Kids

Margot Nolan

Simple Pleasures That Will Instantly Boost Your Mood, According To Your Zodiac Sign

Olivia

What Makes Pisces Sad? All Will Be Exposed In 15 Funny Memes

Margot Nolan

Scientists Discovered A 6,000 Year Old Alien Mask In Bulgaria

Larry

Super Funny Moments That Show How Zodiac Signs React To Crying People

Margot Nolan

15 Hilarious And Relatable Memes For Capricorn People Only

Susanna

1600-Year-Old Roman Cargo Found In Israeli City

Larry

Figure Out 13 Hilarious Reasons That Piss A Leo Off

Margot Nolan

Aries Are Single On Purpose? Let’s Find Out The Answer

Margot Nolan

Pentagon Released 3 Videos Of UFOs

Larry

15 Precise Explainations Why Capricorn Often Takes Longer Time To Find Love

Susanna

Kind Hearted Woman Stops Her Car To Help Dog Get His Stuffed Toy Back

Carolyn Mullet

Mysterious Egyptian Tablet Might Be Ancient Aircraft Control Panel

Larry

Meet Grateful Rescue Dog Toro Who Keeps Hugging Everyone He Meets

Carolyn Mullet

‘Exquisite’ Roman Figure Discovered During HS2 Excavation In Southeast England

Larry

Cat Finds Its Way Home After 7 Years… The Heartwarming Reunion Brought Tears To My Eyes

Carolyn Mullet

Aries Say They Are Working On Their Anger And Here Is How Others See Them

Margot Nolan

Artist Swapped Disney Characters Into Pin-Up Girls, And Fan Just Like Them

Margot Nolan

15 Times Geminis Make People Laugh At Their Thoughts And Actions

Margot Nolan

10+ Libra Memes That Are Too True And Funny To Share

Carolyn Mullet

The Woman Who Saw The Past And The Future During “Near-Death Experience” After Giving Birth

Larry

Reports Claim That Aliens Intimidate To Explode The Sun If Humans Reject Their Demands

Larry

Laugh Out Loud At 18 Hilarious Things That Makes Scorpio Hard To Approach

Margot Nolan

Get To Know Aquarius Through Their Daily Moments

Margot Nolan

21 Clever Life Hacks Showing That Human Creativity Has No Limits

Marry Anna

Japanese Billionaire’s Principles After 89 Years Of Life: The Greatest Is Surpassing Yourself

Larry

Woman Takes Pictures Of Strangers To Show How They React To Overweight People

Leona

California Dad Loses Part Of His Skull After Overdrinking This Type Of Drinks

Larry

Massive Scale Model Of Ancient Rome Rebuilt After 35 Years

Larry

How to avoid burnout at work? This is the best answer from Bill Gates!

Jonathan

20 Women Who Ditched Beauty Stereotypes, Leaving Us In Awe

Margot Nolan

Street Vendor Selling Mummies In Egypt

Larry

20 Funny Memes That Show How Different People Of A Zodiac Sign Can Be

Margot Nolan

Dark Velvet Black Coat Of This Bird Complements Perfectly With Its Lustered Turquoise Crown And Throat Sheen

Daniel

10+ Most Relatable Memes When You Want To Date A Scorpio

Annie

The reason why the rich make money “like a piece of cake”, the poor, even though they work hard, are still penniless

Robert