Ray Dalio sheds light on a Trump 2.0 administration, which could be the most revolutionary or radical in living memory.
Ray Dalio sees a major power shift to the Republican Party, which is far more united behind a particular ideology, primarily being almost a business-like capitalist approach to renovating government and the country as a whole.
Significant overhaul coming, Ray Dalio sheds light on a Trump 2.0
“You’ll see industrial policies and more use of technology to create an American First renovation of the US and renovating the government,” said Ray Dalio.
“Now we are going to see that mandate pursued in conflict with the bureaucracy it has to deal with and whatever the opposite it has to deal with,” he added.
“You’ll see industrial policies and more use of technology to create an American First renovation of the US and renovating the government”
RAY DALIO
But as Washington Week noted, nobody knows come January 1 how Washington and America will change come January 20.
However, the Supreme Court ruled earlier this year that granting Presidents broad immunity has made Donald Trump one of the most powerful and emboldened US presidents ever to take office.
If Trump needed roadblocks removed and more power to make revolutionary changes, Trump 2.0 has it.
Political analysts believe radical change is coming.
Analysts believe Trump sees the executive branch, his advisers, and various department agencies as resistance rather than part of his team.
Trump wants to cut it, cut the spending.
So Trump appointed Elon Musk and Vivek Ramaswamy to lead that effort as outsiders.
Musk has already stated he wants to cut 2 trillion dollars of government spending out of a budget of 6.7 trillion dollars.
“Trump wants to cut it, cut the spending. So Trump appointed Elon Musk and Vivek Ramaswamy to lead that effort as outsiders”
WEALTH TRAINING COMPANY
In other words, you have to cut all discretionary spending.
Some fear that could mean going after entitlements, which Trump has promised not to do.
It looks like they are trying to install loyalists in all these agencies.
Trump is likely to be surrounded by people who are loyal to him. In other words, they are yes men who won’t get in his way.
Some analysts are predicting potential disruptions.
“I am your worrier. I am your justice for those who have been wronged and betrayed. I am your retribution,” said Trump to his followers last year before the assassination attempt on his life.
But retribution, an eye for an eye, tooth for a tooth, style period of vendetta could get ugly.
Trump’s top leadership have worked for him in his defence.
Some political analysts have likened it to the Trump law firm. He has put his lawyers in top positions in the Justice Department. He is likely to go after the investigators who have investigated him.
Political analysts liken it to the end of the post-Watergate era.
“We could see more international risks and conflicts” – Ray Dalio
Ray Dalio sheds light on a Trump 2.0, a mandate to overhaul the federal government.
“You will see tough people united behind that mandate.
It will not be smooth sailing,” he said.
Some left Democrat mandates of creating a soft border, job or education, poverty alleviation, social programs, or environmental could be in jeopardy.
Ray Dalio sees two parts to Trump 2.0, the renovation of government and preparing for war or at least the possibility of war and that war could be internal or external.
Ray Dalio sheds light on a Trump 2.0 in a bipolar world.
He sees international conflict with China, Russia, North Korea and Iran as part of that world dynamic.
Ray Dalio sees the end of a unilateral world order where there was a period of relative peace.
He believes we have entered a bipolar world where rising powers are challenging the hegemon.
“Not everyone wants to follow, and that element of moral leadership and a system for the wholes that is rule-based is now changing.
We could see more international risks and conflicts,” said Ray Dalio.
“In short, financial markets are embracing Trump 2.0”
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He refers to the template-Changing World Order, a book by Ray Dalio.
“All of this stuff has happened before, and you need a context for that, so that is the best I can give you. That is the best context I can give you. Teach a man how to fish rather than give him a fish.
So, I think that template, Changing World Order, could help investors,” he said.
Ray Dalio sheds light on a Trump 2.0, but how will it impact investment portfolios?
With the world increasingly polarized between East and West, with international conflicts on the rise safe haven currencies, USD and CHF, are likely to outperform.
Cutting the public deficit could end the bear market in treasury bonds as investors seek yields in the perceived safety of the USD.
Demand for treasuries could solve the imbalance in the treasury market, which would also keep the USD robust.
America First policy is also likely to benefit American stocks.
US Manufacturing sentiment is already improving.
Trump has also pledged to make the US crypto capital of the world, So the Trump 2.0 crypto-friendly administration is attractive to young voters who see their crypto portfolios rise.
In short, financial markets are embracing Trump 2.0.
With rising geopolitical instability, US dollar-denominated assets could outperform.
Internal conflict, Ray Dalio sheds light on a Trump 2.0 administration
Probably the greatest danger to the US and US investments are not external but internal.
Trump is both popular and a polarizing figure.
So what will this period of retribution , hopefully brief, where political rivals were imprisoned, witch hunts and assassination attempts look like?
Will this infight at the top spill down onto the streets?
Cutting two trillion off public spending could impact many people, particularly those in the public sector.
Domestic threats could be the greatest threat to peace, prosperity and USD assets.
