📉 Ray Dalio has made some depressing prognoses for the next 18 months. 😔
He believes that the most important thing for the majority of people is to imagine the worst-case scenario. If people are prepared for the worst, they will be prepared for any circumstance and will likely be able to cope.
Ray Dalio is an American billionaire investor and hedge fund manager. 💼💰
Throughout his career, he has encountered various events and cycles in different countries, which has led him to study the causes and consequences of these events.
He realized that to understand what is happening in the present and what might happen in the future, it is necessary to study history.
Mistakes made early in his career led him to realize that the greatest surprises occur when something happens for the first time in his life but has happened many times in history. ⚠️
One of these instances was on 15 August 1971, when the US announced that it would stop exchanging paper dollars for gold.
He assumed that this would lead to a crisis and a fall in stock prices, but in fact, prices increased. He couldn't explain this phenomenon because he hadn't experienced such a currency devaluation before.
Turning to history, he found a similar situation that occurred on 5 March 1933, when Roosevelt defaulted on exchanging paper money for gold, and stock prices also increased. 📈💰
This prompted Ray Dalio to study and understand the causes of such events, and to realize that the creation of money and its devaluation leads to rising prices.
From then on, he began to study the ups and downs of markets, economies, and countries.
For example, his study of the debt bubble of the 1920s, which led to the financial crash of 1929-1933, allowed him to predict and capitalize on the financial crisis of 2008.
Ray Dalio realized the importance of looking at the long term and realizing that history tends to repeat itself. 🔄
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