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Why Ray Dalio Thinks Present Condition Is Similar to 1930s

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Ray Dalio on the present economic condition

Billionaire investor Ray Dalio believes that the present economic condition in the US is similar to conditions in the mid-to-late 1930s. 

Dalio made the following comparisons between current times and the 1930s:

  • large deleveraging
  • monetization of debt that helped the economy and markets grow
  • protectionist approach
  • huge wealth gaps
  • strong impact of populist leader
  • prevalence of populist, militarist, and nationalist ideology
  • appearance of new world powers to confront the old

In October 1929, the market saw a huge crash, which led to a 12-year depression that affected all major Western countries. The Dow Jones Industrial Average (DIA) saw sharp drops of 12.8% on October 28, 1929, and 11.7% on October 29.

You may be interested to read, Jack Bogle Explains How Long-Term Investors Can Lose for more information.

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