How do you anticipate the future? Ray Dalio answers in this video: by studying the past. History repeats itself. By looking to the past for similar situations, we can try to guess what might happen in the coming years.

Three big changes are happening in the world right now:

1) Countries are more indebted than ever. The largest nations don't have enough money to pay off their debts, even after lowering interest rates to zero. So their central banks have started printing a lot of money to do so.

2) Great internal conflicts have arisen because of the growing wealth inequality.

3) There is a growing external conflict between two great world powers: a rising power (China) and the currently dominant power (the United States).

Ray Dalio has studied more than 500 years of history to find similarities with the current situation: the characteristics we are experiencing have already occurred in the past and almost systematically lead to a change in the world order. From the Dutch, French and British empires to America today, we could be moving towards a new Chinese era within a few years.


Source : Principles by Ray Dalio