Summary of Ray Dalio, founder of hedge fund Bridgewater Associates and billionaire investor, speaking at the Abu Dhabi Financial Conference:
1. Shift in investment strategy: Ray Dalio, founder of Bridgewater Associates, said he would invest in "hard currencies" such as gold and Bitcoin while avoiding debt assets. He believes that since most major economies are facing rising debt problems, there may be a debt crisis in the next few years, leading to a significant depreciation of currency values.
2. Debt level warning: Dalio emphasized that the debt levels of all major countries, including the United States, have reached "unprecedented levels" and pointed out that the current debt levels are unsustainable.
3. Key forces: He listed "debt, currency and economy" as one of the five key forces affecting future development. The other four forces include the internal political order of countries driven by wealth and value gaps, the external geopolitical order caused by power conflicts, natural disasters (such as droughts, floods, epidemics and climate change), and the invention of new disruptive technologies.
4. Shift in attitude towards Bitcoin: Dalio was once skeptical of cryptocurrencies such as Bitcoin, but has become a major supporter of Bitcoin in recent years. In 2022, he said that in addition to gold, it would be reasonable to allocate up to 2% of the portfolio to Bitcoin to hedge against inflation.
5. Investment advice: Dalio advises investors not to get too hung up on the back and forth of daily headlines, but to think more about big trends and include diversification and functionality in investment strategies to be able to respond to those potential threats and opportunities.