Keep pulling the thread on Ray Dalio.
Ray Dalio argues that the United States must build self-sufficiency and can no longer depend on imports or borrowing to pay for them, especially in a world that is "almost at war."
Ray Dalio predicts the United States will resolve its debt problem by devaluing the currency, printing money, and creating artificially low interest rates, similar to the approach taken by Japan.
Ray Dalio states that central banks around the world are acquiring gold as a diversifier due to concerns about sanctions, similar to those imposed on Russia.
Ray Dalio asserts that tariffs are not inherently bad for an economy, noting they were historically the main source of government revenue.
Ray Dalio believes that forcing U.S. interest rates down would harm bondholders, reduce demand for the bonds, and potentially create a negative economic spiral.
Ray Dalio states that the safest investment available right now is an inflation-indexed bond (TIPS), which he says will yield a real return of over 2% above inflation.
Ray Dalio recommends that a prudent investor should allocate between 10% and 15% of their portfolio to gold.
Ray Dalio predicts that gold will be the better performing currency compared to major fiat currencies due to widespread devaluation pressures.
Ray Dalio believes a coordinated, government-led devaluation of the U.S. dollar, similar to the 1985 Plaza Accord, is a possibility.
Ray Dalio states that for approximately 30 years after a major mistake in 1982, his fund at Bridgewater achieved an average annual return of about 11.8%.
Ray Dalio claims that in over 30 years, Bridgewater's fund had no significant down years except for a 13% loss in 2020 during the COVID pandemic.
Ray Dalio's investment strategy is based on holding 15 good, uncorrelated return streams, which he claims can lower risk by about 80% and raise the return-to-risk ratio by a factor of five.