Billionaire hedge fund founder Ray Dalio had an ominous message for investors as he sounded the alarm over similarities between today’s global climate and the period before World War II.
In a February interview with Fortune, Dalio said the U.S. had entered “Stage 6” of his Big Cycle, the framework he uses to map the rise, peak, decline and restructuring of nations and global powers over long stretches of history.
He expanded on that view in a post published after the Munich Security Conference, writing that “the post-1945 world order has broken down” and that the world is now moving through a period in which “there are no rules, might is right, and there is a clash of great powers.”
That framework may already be visible in today’s geopolitical backdrop. In the same post, Dalio argued that “before there is a shooting war there is usually an economic war,” pointing to the kinds of pressure campaigns that tend to come first, including tariffs, sanctions, “asset freezes/seizures,” “blocking capital markets access,” and “embargoes/blockades.”
For investors trying to figure out what that actually means for their own retirement accounts, investment mix and time horizon, the answer is rarely obvious without a second opinion.
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It is worth five minutes of your time to find out whether your current plan is built for the world Dalio is describing.
Global Powers Heading for a ‘Final Battle’
Dalio’s Big Cycle model is built on centuries of history, including the rise and fall of empires such as the Dutch, British and American orders. In his telling, Stage 6 …
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