Famous investor Ray Dalio has once again pointed the way for investors. He emphasized that in the complex and ever-changing global economic environment, asset diversification is key to preserving and increasing wealth. Dalio admitted that even with his many years of investment experience and substantial capital investment, it is difficult to accurately predict market trends; only diversified investment is a long-term effective strategy.

Ray Dalio delves into the relationship between debt cycles and economic crises. He points out that when a country consistently spends more than it earns over a long period, the accumulated debt can lead to political conflicts and social unrest, potentially even resulting in war. The experiences of Europe and America in the 1930s are a typical case. Therefore, investors need to deeply understand the interactions between debt expansion, interest rate changes, and currency devaluation in order to grasp the essence of asset price fluctuations.

When comparing the debt situation of the United States and China, Dalio mentioned that U.S. debt has surpassed $37 trillion, with interest payments nearing military expenditures. He warned that relying solely on interest rate cuts to alleviate debt pressure may exacerbate the depreciation of the dollar and damage its credibility. In contrast, China's and Japan's debts are primarily denominated in their own currencies, with both creditors and debtors being domestic, which provides some buffer space for the economy. However, China's local government debt still needs to be properly managed, and how to effectively utilize massive savings to enhance productivity will be key to future economic growth.

Dalio's core advice is: do not concentrate all funds in a single investment. In the context of increasing global economic uncertainty, diversifying investment risks is wiser than betting on a single market direction. This view is not only applicable to individual investors but also holds significant reference value for institutional investors and policymakers.