Ray Dalio's Survival Guide for Turbulent Times

Author and financier Ray Dalio sees risk of upcoming turbulent times. Here are actions individuals can take that align with his thinking:

• Investment Strategies for Individuals
• Career and Education Advice
• Potential Relocation Destinations
• General Principles for Resilience

Investment Strategies for Individuals

1. Diversification Across Asset Classes and Currencies

   • Dalio strongly advocates his "All Weather" portfolio strategy
   • Distribution among stocks, bonds, commodities, and gold
   • Exposure to multiple currencies and economies
   • Not relying solely on one currency, especially not just USD

2. Inflation-Protected Assets

   • Real assets that can withstand inflation: real estate, land, forest
   • Precious metals, especially gold (Dalio: "Cash is trash" during inflationary periods)
   • Treasury Inflation-Protected Securities (TIPS)

3. Geographic Diversification

   • Spreading investments across multiple countries and regions
   • Investing in both established and emerging economies

Career and Education Advice

1. Focus on Productivity-Enhancing Skills

   • Develop skills that create real value
   • Continuous education to maintain relevance
   • Digital and technical competence

2. Create Multiple Income Sources

   • Not relying on just one employer or sector
   • Develop side incomes and passive income streams
   • Build networks across different sectors and geographic areas

Potential Relocation Destinations

Dalio has not explicitly listed countries to move to, but based on his analyses, the following areas could be advantageous:

1. East Asia (especially Singapore and parts of China)

   • Economic boom
   • Strong productivity growth
   • Relatively stable political systems with long-term planning

2. Neutral, Stable Countries

   • Switzerland, New Zealand, Australia
   • Countries with strong rule of law and low risk of internal conflicts
   • Historically stable currencies and banking systems

3. Resource-Rich Countries

   • Countries with natural resources and self-sufficiency
   • Low debt and sustainable social systems
   • Examples: Norway, Canada, parts of Australia

General Principles for Resilience

1. Freedom from Debt

   • Minimize personal debt
   • Have sufficient reserves for unexpected situations
   • Focus on cash flow rather than speculative investments

2. Self-Sufficiency

   • Basic skills to manage in different environments
   • Build personal resilience and adaptability
   • Invest in practical knowledge and networks

3. Flexibility and Adaptability

   • Be prepared to change plans when circumstances change
   • Have a "Plan B" for residence, income, and assets
   • International mobility (dual citizenship/residency permits)

Dalio emphasizes that escape is not the primary solution. His focus is on understanding cyclical patterns and adapting to them rather than "fleeing" from problems. He believes that turbulent periods also create opportunities for those who understand the dynamics and are well prepared.