Suggests investing in VIETNAM and a few ‘GULF’ States
In This Article:
- Ray Dalio’s Concerning Predictions
- The Political Climate: Biden vs. Trump
- Historical Context and Public Opinion
- Investment Strategies in Uncertain Times
“What kind of American are you?”
The chilling scene from the current movie, ‘Civil War’ was pretty dramatic. Frightened civilians being detained are asked by US soldier exclaim, “there must be a mistake, we are Americans…”. Only to be asked, “well, what kind of Americans are you?”
All Hollywood fiction of course.
Yet now, an increasing number of financial elite are not so certain a new American Civil War is limited to the realm of movie make believe.
This is falling into line as one of the components/events I outlined in my detailed GCR Roadmap last year.
In a recent interview, billionaire investor Ray Dalio openly stated he believes the chances of a second American Civil War stand better than one out of three.
He urges investors to move part of their assets out of the country. Dalio, who founded Bridgewater Associates, the world’s largest hedge fund, shared his concerns in a recent interview with the Financial Times.
Ray Dalio’s Concerning Predictions
Ray Dalio estimates the probability of civil strife erupting in the United States at somewhere between 35% to 40%.
He considers this year’s presidential election between incumbent Joe Biden and challenger Donald Trump to be the most important of his lifetime.
According to Dalio, the election will serve as a litmus test determining whether risks spiral out of control. “We are now on the brink,” he stated, emphasizing the gravity of the situation.
The Political Climate: Biden vs. Trump
The 2024 presidential election is crucial. Dalio believes the reactions to the election will play a significant role in determining whether the system can still heal itself.
He questions whether there will be an acceptance of the rules and an ability to work well under those rules.
The 2020 election and subsequent American polarization have shown the potential for political upheaval, bringing the specter of civil war closer to reality.
Historical Context and Public Opinion
Civil war seemed inconceivable a few years ago.
The idea of a “national divorce,” proposed last year by Congresswoman Marjorie Taylor Greene, has even made its way to the silver screen.
A Rasmussen poll conducted shortly after the film Civil War’s release suggested 41% of likely U.S. voters believe they will experience a civil war sometime in the next five years.
Investment Strategies in Uncertain Times
In response to these potential risks, Dalio advises investors to stay invested only in “the best parts of the United States” where innovation and capitalism still thrive.
He also suggests moving the rest of their money to more stable and attractive jurisdictions. Countries like India, Singapore, Indonesia, Malaysia, Vietnam, and some Gulf states look appealing due to their strong balance sheets, internal order, and neutrality in geopolitical conflicts.
One notable example is Warren Buffett, who recently revealed a $7 billion stake in Chubb, an American insurance company that relocated its operations from the U.S. to Switzerland in 2008.
This move aligns with Dalio’s strategy of seeking stability and growth outside the U.S. while still capitalizing on lucrative opportunities within it.
The Bottom Line
When billionaires like Ray Dalio talk about the possibility of a new American Civil War, it may be time to wake up and take vigilance.
The political climate, historical context, and public opinion suggest a growing risk of civil strife. Investors should consider diversifying their assets and seeking stable investment opportunities both within and outside the United States.
As the election approaches, the nation’s ability to navigate this pivotal moment will be crucial in determining its future stability.