Why Ray Dalio Thinks Present Condition Is Similar to 1930s



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.

Article continues below advertisement

More From Market Realist