December 25, 2024

Ray Dalio, founder of Bridgewater Associates LP, said in an interview on the sidelines of the Milken Institute Asia Summit in Singapore on Wednesday,

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SINGAPORE – US billionaire Ray Dalio has listed five major forces at the front and center of the world economy.

The founder of Bridgewater Associates said in a speech at the Milken Institute Asia Summit in Singapore that these five factors are interrelated and often cyclical. Dalio made the remarks Wednesday ahead of the Federal Reserve’s rate decision.

1. Debt, Currency and Economic Cycles

Dalio expressed concerns about how to manage the country’s debt as uncertainty remains over actions by the Federal Reserve at this week’s meeting.

“We’re going to change the Fed’s interest rates, what’s going to happen to the whole dynamic? What’s going to happen to all the debt? How is it going to be dealt with?” he mused.

2. Internal order and chaos

3. Conflict between great powers

Dalio listed geopolitics as his third concern: the relationship between the United States and China.

U.S.-China relations are affected by a range of ongoing tensions, such as territorial issues in the South China Sea, Taiwan’s political status and economic tariffs.

“I think there may be a fear of war – mutually assured destruction. But it’s chaos,” he later stressed, without pinpointing the specific ignition point.

4. “Natural Behavior”

5. Technology

The billionaire said technology can be “fantastic” if people adopt and invest in it appropriately.

“The potential benefits to productivity are huge,” he said, elaborating that technology will create unicorns and that when it does, a small group of people will perform better.

He further said: “Whoever wins the technological war will win the military war.”

When Dalio evaluated the five factors overall, he concluded that “surprisingly, there were more downsides than upsides,” he said.

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