A guru revealed the five main forces that they believe will define the global economic destiny

A guru revealed the five main forces that they believe will define the global economic destiny

This is Ray Dalio a very influential figure in the financial world that, among other things, develops the “All Weather Portfolio”, which seeks to diversify investments to mitigate risks in different economic environments.

Within the framework of the summit of World Economic Forumwhich is celebrated in Davosthe guru Ray Daliofounder of Bridgewater Associatesshared his perspective on the Artificial Intelligence (AI)its impact on the economy and the challenges faced by governments and companies today.

For Dalio La AI, he described it as the “Most significant technological strength of our time” And he explained that its application can transform all industries, from finance to health. For him, “AI is not only a tool, but a revolution comparable to the industrial one. Represents intelligence about intelligence, and that will change everything

Dalio He reiterated his theory over the five main forces that define the global fate. The first lto economic dynamics of credit and debtsaying that “credit creates markets, but also leads to debt cycles that we must carefully manage.”

Then, internal conflicts, because he explained that “tensions between rich and poor, left and right, affect economic and social policies.” The geopolitical rivalry also influences since “We are in the midst of a change in the world order, with the United States and China as key protagonists.”

The natural phenomenathey also impact like, The pandemics, floods and other events of nature that influenced, according to him, many wars in history. Finally, he said that technological innovation, by the hand of AI is the most transformative force of our era.

Dalio stressed that these forces are interconnected. For example, The technological rivalry between China and the United States has both military and economic implications.

Artificial Intelligence: The consequences it brings

According to Dalio, although AI promises to improve efficiency in all industries, tmay also exacerbate inequalities if benefits are not properly managed. “60 % of the population of the United States has a lower educational level than the sixth grade. This raises a great question: how do we redistribute the wealth generated by technology?” He reflected.

The evolution of markets and investments

On the other hand, the Dalio Guru warned about the current risks derived from global debt and possible bubbles in specific sectors, such as technology. “Nothing that is known has a lot of value in the markets. The key is to be smarter than others and anticipate what is coming,” he said.

He also suggested that Investors should assign between 10% and 15% of their portfolios to alternative assets such as gold or bitcoinalthough he expressed a personal preference for gold. “Gold is the only asset that does not depend on anyone else’s promise. Bitcoin has potential, but still faces challenges such as privacy and regulation,” he explained.

Source: Ambito

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