Ray Dalio Sees General Diversification Away From the US

Summary

Ray Dalio, founder of Bridgewater Associates, speaks at Davos about the five big forces and the concept of a capital war. He sees a general diversification away from the US and fiat currencies, with central banks buying gold to diversify from dollars and euros. He worries about the value of money and debt dynamics but thinks a melt-up is more likely than a meltdown, while flagging geopolitical risk from Greenland.

• Ray Dalio discusses capital war, de-dollarization, and diversification away from US assets at Davos.
• Central banks are buying gold to diversify from fiat currencies like the US dollar and euro.
• Dalio sees a shift away from US assets toward the rest of the world.
• He worries markets are missing the value of money and debt dynamics.
• He thinks a melt-up is more likely than a meltdown.
• Geopolitical risk around Greenland could have capital war implications.