Billionaire Ray Dalio Expects a 20% Drop in Stocks

After months of elevated inflation, investors are expecting big moves from the Federal Reserve today. As a result, billionaire hedge fund founder Ray Dalio said he was expecting a 20% decline in stocks. [Outsider Club Header] Sep 21, 2022 By Luke Burgess for the Outsider Club Billionaire Ray Dalio Expects a 20% Drop in Stocks After months of elevated inflation, investors are expecting big moves from the Federal Reserve today. Analysts at Nomura Securities wrote last week that the Fed will jack up short-term rates to a range of 3.25%–3.5% today — and will end up increasing rates to as high as 4.75% by next year. The federal funds rate now hovers in a range of 2.25%–2.5%. Federal Funds Rate — 40 Years[gerte] As a result, billionaire hedge fund founder Ray Dalio said he was expecting a 20% decline in stocks. Dalio wrote in a LinkedIn post, “I estimate that a rise in rates from where they are to about 4.5% will produce about a 20% negative impact on equity prices... The economy will be weaker than expected.” Dalio continued, “This will bring private sector credit growth down, which will bring private sector spending and... the economy down with it.” The S&P 500 has shed 6.6% since last Monday as inflation data ignited fears of a big rate hike. As I write this now, the S&P sits at about 3,850. Another 20% decline would put the index back under 3,100 and erase a year and a half of gains. S&P 500 — Two Years[gerte] So what does it all mean for gold and precious metals? Well, that’s anyone’s guess right now. New Robot Has Tech Execs Scrambling You might not believe this is even real, but I assure you this video has been left unedited. Nearly every tech company in the world is scrambling to get its hands on this tech. And investors are set to profit handsomely. Get the details on [our Top 3 Stocks Picks here.]( The precious metals market has become completely out of tune with traditional standards. Rising inflation tends to devalue currencies and boost demand for precious metals like gold and silver. But that hasn’t happened. Instead, the value of the U.S. dollar has soared to a 20-year high, as measured by the U.S. Dollar Index. As a result, gold prices have plummeted from their March high of over $2,000 to almost as low as $1,650 an ounce today. Gold Price — One Year[gerte] So how will a big hike in short-term rates affect gold? Well, that depends on how the dollar will react. But given how the greenback has performed over the past several months, that’s completely unpredictable. Part of what it takes to be an "expert" is knowing when you don't know — especially in investment markets. Public markets are (and always have been, as far as I can tell) highly irrational, and sometimes they become completely absurd. I mean, just consider everything from the Dutch tulip bubble to NFTs. Public markets have at least a 400-year history of throwing people curveballs. Right now, the precious metals market is simply too upside-down to predict. As I mentioned to other subscribers earlier last week, the best move in the gold and precious metals market right at this particular moment is probably no move at all. Gold and precious metals will likely remain under pressure as long as the dollar stays strong. And there’s just no telling how long that will be or how much stronger the greenback might get from here. China’s "Smart Missile" Could Bring You a Six-Figure Payday It’s a new type of "smart missile" so deadly that it can strike targets as far as 1,242 miles away faster than a speeding bullet. That’s the equivalent of firing a missile from New York City and hitting a target in Miami in less than 12 minutes. And for our local American forces... China’s new weapon is the sum of all of their deadliest fears. But for the everyday investor? [It's the greatest wealth-building opportunity of the century.]( That’s all I’ve got for you today, but before I let you go, I wanted to share some research my colleague Jason Williams just sent over. He’s been researching all the various shortages and crises that have been plaguing the world the past two years and identified a growing one that’s not getting any attention in the mainstream press. And he’s convinced it’s about to become a bigger problem than the supply chain issues, labor shortages, and energy crisis combined. But in every crisis lies opportunity, and Jason found one that could send the shares of a particular company SOARING and turn this unknown gem into a household name. So I got him to let me share his full report on what he’s calling [“The Next Nestle.”]( He’s laid out a pretty compelling argument and, with the company’s stock trading for less than $1 and poised to soar as high as $10, it’s a pretty compelling potential profit too. [Check out his report today]( and get yourself invested BEFORE this small stock becomes a global giant. Until next time, [Luke Burgess Signature] Luke Burgess Turning Waste Into Gold... Literally Scientists just achieved the unbelievable... setting up investors like yourself to get filthy rich. See, they recently discovered how to extract gold from a very unsuspecting (and cheap) substance. A Nobel Prize winner summed it up perfectly... “[This material] turns rubbish into gold, literally." That’s right — we’ve essentially created the “philosopher’s stone”! This discovery could lead to the creation of trillions of dollars in new wealth — essentially out of thin air. But without this [one material,]( none of it is possible. And that’s not all. We need this substance for so much more than just making gold... Energy storage... biotechnology — the list is nearly endless. As you can imagine, the profit potential thanks to this one material is nearly limitless. [I have a complete dossier on a prime opportunity right here.]( Follow the Outsiders [Twitter]( | [Facebook]( | [LinkedIn]( | [YouTube]( This email was sent to {EMAIL}. You can manage your subscription and get our privacy policy [here](. Outsider Club, Copyright © Outsider Club LLC, 3 E Read Street Baltimore, MD 21202. Please note: It is not our intention to send email to anyone who doesn't want it. If you're not sure why you're getting this e-letter, or no longer wish to receive it, get more info [here]( including our privacy policy and information on how to manage your subscription. If you are interested in our other publications, please call our customer service team at [1-855-496-0830](tel:/18554960830).