ray dalio principles for changing world order

This, in turn, increases the competitive positioning of existing infrastructure assets. In contrast, infrastructure benefits from negative real interest rates because rising inflation increases its replacement cost. Meanwhile, large index funds - which have been so popular and have done so well over the past decade - like the SPDR S&P 500 Trust ETF ( SPY) and the Vanguard S&P 500 ETF ( VOO) are also unlikely to thrive in the current environment as inflation hurts many of the index's constituents and the historically-high valuation of the S&P 500 has set it up to suffer with any increase in nominal interest rates. In a macroeconomic setting with high inflation and negative real interest rates, Bonds ( BND) are particularly poor investments because the purchasing power of the principal and fixed coupon interest payments deteriorates. Negative real interest rates are likely to persist for the foreseeable future The bull case for infrastructure in the 'new world order' that Ray Dalio speaks of really boils down to five things: 1. Why Infrastructure Stocks Are Poised To Outperform In The New World Order In this article, we will discuss our top investment theme for profiting from this trend - Infrastructure ( IFRA) - as well as our top pick in the sector at the moment. Along with predicting increasing confrontation and even conflict between the existing dominant power (the United States) and the rising great power (Communist China), his analysis concludes that we are in a period where burdensome sovereign debt, massive money printing, and large wealth gaps will likely become further exacerbated.

Ray Dalio - head of the world's largest hedge fund - recently predicted that a new world order is coming. Kimberly White/Getty Images Entertainment

Ray dalio principles for changing world order