Dear Reader,
Today I want to talk about a new book by billionaire investor and founder of the hedge fund titan Bridgewater Associates…
It’s called, How Countries Go Broke: Principles for Navigating the Big Debt Cycle, Where We Are Headed, and What We Should Do.
Ray Dalio is one of those people you want to listen to.
He’s a man who is deeply thinking about the challenges we face.
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The “Buffett Indicator” Predicts 62% Stock Market Crash
Warren Buffett just froze all buybacks and sold more stocks than at any time in Berkshire Hathaway’s history.
That’s because the last time the “Buffett Indicator” flashed this red was in 2000 – right before the market crashed 50%.
Take these 4 steps to protect your retirement here.
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Ray Dalio isn’t just an investor worth $14 billion…
He’s also a true debt expert.
He’s traded government debt all around the world.
And he recently studied 35 debt crises over the past 100 years and was concerned enough about our fiscal situation to write this book.
In the book he outlines the stages of a debt crisis and the red flags we’re already seeing…
Such as government selling more debt than it could actually buy back as investor appetites wane…
And central banks being forced to print more money due to governments bringing in less than they’re spending.
This is worth talking about. Ray Dalio and I are looking at the same history.
We’ve talked about these same things in our own book, Midnight in America – which is utterly important for you to read.
Because not only do we discuss the warning signs happening right now…
But we lay out how to protect yourself – the exact steps to take.
One important thing to keep in mind is that the U.S. bond market sets the terms for all asset classes around the world.
It’s like the blood that flows through the arteries of our financial system…
And that’s an important metaphor because Dalio says we’re on the verge of having a financial heart attack.
Because the debt service – the interest we pay on these bonds as a country – becomes like plaque in the arteries…
Constricting the flow of blood.
It’s really easy to understand that when you see we’re paying about a trillion dollars a year in interest.
When you look at the U.S. government’s line-item budget, it’s Social Security, Medicare, Defense and then interest on debt…
A trillion dollars’ worth!
Can you imagine what we could do with a trillion dollars a year, actually investing it in the country?
So Dalio says the more debt you issue, the more interest you pay, the more your arteries get clogged and the more susceptible you are to heart attack.
And he’s right. We’ve studied the same kind of thing.
I leave you with this quote I thought was worth sharing:
“Now is the time for policymakers to put up or shut up…
“Whatever form of grand bargain cuts the deficit by about 3% of GDP is good with me.”
Now is the time for policymakers to put up or shut up – I couldn’t agree more.
We might think all these tax cuts, all this spending is terrific.
Everybody might be excited about that.
But it’s like eating a lot of sweets.
We’re old enough now, if we eat a big piece of chocolate cake at night, we’ll feel a bit hungover the next day.
Right now, our country has been eating chocolate cake every single day for the past eight years.
And I’m telling you, the hair of the dog is not going to help this one.
I wanted to share this with you because Ray Dalio is a serious man who cares deeply about our country.
And again, I encourage you to read Midnight in America.
I’ve included the playbook on exactly how to manage your portfolio for the market we find ourselves in today.
Time is running out to start making these moves that could secure your family’s financial future.
It’s the playbook I’ve used to make the majority of my personal wealth – and most of it through tough markets!
Go here now to get your copy.
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