Ray Dalio is a Shill for ‘China Money’

A few years ago, I conceptualized the thesis for a lesser-known book of mine called Decoded, in which I examined centrally planned economies. What’s ironic is that I released it in a centrally planned economy, so to get it past the ‘information overlords,’ I Machiavellianly crafted the entire narrative.

I inverted my argument and praised the wonders of centrally planned economies while, as an investor and scholar, I fully understood the downsides of such systems.

Let me explain…

You know how sometimes we observe different leadership elements in various sectors or subsectors, or how some people reference small-cap stocks? There’s also the overlay of what the FED might do or how the MAG 7 (the largest U.S. tech companies) have a profound effect on the stock market.

What you need to consider is that the size and influence of the MAG 7 grew gradually, albeit accelerated over time. The same applies to the FED’s impact.

To understand centrally planned economies, imagine that the rise of the MAG 7 and the FED’s influence were inorganically preordained — similar to the dominance of large tech companies in Japan or Samsung, and now China.

Yesterday, I mentioned the limits of the market’s up or down movements. In freer markets, such limits are less rigid, and there’s more guesswork involved with the FED compared to the Chinese state bank’s stimulus or lack thereof. This uncertainty explains the volatility we experience on various days.

Here’s the revised version:

This volatility is the reason why, historically, developed markets—particularly the United States, the most developed market—always lead. U.S. equities are disproportionately large relative to the country’s GDP. This demonstrates that the U.S. is moderately more influenced by less central planning and is open to more volatility, which is why you get a bigger bang for your buck, also known as ROI.

In both financial and general media, it’s often chaotic how people discuss subjects, both positively and negatively. Ironically, this mirrors the market’s volatility, which leads to greater price discovery and, subsequently, larger gains. This is why constituents of the MAG 7 experience shorter windows of consolidation relative to companies like BABA 0.00%↑ , which is what many value investors have misunderstood and continue to get wrong.

Once you understand the structure, you can comprehend the possibilities and limitations within the economy, market and stock.

Beautiful deleveraging? From China shill Ray Dalio is one of the only sources of Chinese equities media. In fact, as for all press you only ‘low key’ hear bearish thesis’s because domestic analyst have been brainwashed and conditioned to think a bear story is unpatriotic. This is why the ‘boot on the ground’ argument is less meaningful to me.

I took a screenshot of Dalio’s first few lines, where he presents his age as a form of credentialism. The question is: Is Dalio ever right on China? No. But does Bridgewater get a lot of AUM from China? Yes.

Dalio has leveraged his credentialism, based on Chinese AUM, to justify and curve-fit his ‘principles’ of Chinese central planning, much like I did for Decoded—or more importantly, in the manner of a propagandist. A brilliantly executed soft-landing fluff.

Now, what will happen to Chinese equities after this so-called brilliantly executed soft-landing fluff? A few limit-up days followed by endless consolidation for years.

No quick, accelerated 10-bagger in sight.

I am not wrong.