Ray Dalio flags US-China ‘Economic Warfare’ among top global risks
economictimes.indiatimes.comRay Dalio said internal conflicts will be the “highlight of this year,” particularly on the issue of whether the US election result will be accepted by both parties.
The policies from an administration run by Donald Trump would be very different from a Democratic one, Dalio said during a video speech at the Greenwich Economic Forum in Hong Kong Wednesday. However, on anti-China policies, there’s broad agreement between the two parties.
“There’s a great risk of economic sanctions that would be really terrible for the world,” said the billionaire investor and founder of Bridgewater Associates.
Dalio was building the case that the world is entering a period of greater risks, on the back of enormous debt creation, internal conflicts unprecedented in developed countries and great power clashes.
Adding to those are natural disasters that would cost 8% of annual global gross domestic product to curb, pandemics and the greatest industrial revolution propelled by artificial intelligence. The uncertainties call for effective diversification in investments, across countries, currencies and asset classes.
“The power of diversification is greater than the power of even good decision-making,” he said.
Looking back in history, “economic warfare precedes military warfare,” he said. While most likely there will be no imminent form of military conflict, on the issue of Taiwan, the one-China policy “will not go on forever.” That’s triggered questions from international investors who are gauging whether they will suffer from
