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Principles for Dealing with the Changing World Order

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Principles for Dealing with the Changing World Order

Ray Dalio,

5 min read
3 take-aways
Audio & text

What's inside?

Wish you had a crystal ball? Maybe what you really need is a history book.

Editorial Rating



  • Overview
  • Background
  • Engaging


Recent world events may seem unprecedented, but according to investment manager Ray Dalio, that’s only because similar situations haven’t yet occurred in your lifetime. If you study history, he says, you’ll see that it’s all happened before, and if you look back far enough, you’ll note that current events are following a somewhat predictable cycle. In this engaging video, Dalio delivers a lively overview of what he’s learned from 500 years of macroeconomic history, and he offers some lessons that might help you better understand these turbulent times.


World leadership shifts in predictable patterns.

Over the past 500 years, dominant global empires have risen and fallen; the three most recent have been the Netherlands, Great Britain and the United States. World powers go through three predictable phases: “the rise, the top and the decline.” You can determine what stage a world power is in by measuring its strength in eight metrics: education, innovation and technology, competitiveness, economic output, global trade, military capability, capital markets and currency.

During its rise and time at the top, a nation expands as a result of these mutually reinforcing factors, and it similarly unwinds during its decline. A careful study of power shifts reveals...

About the Speaker

Ray Dalio is a hedge fund manager and author. He founded Bridgewater Associates in 1975 and has served as its co-chief investment officer since 1985.

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