Book Digest: How to Make Money Using Lessons from Ray Dalio’s Changing World Order
If you’ve ever wondered why some people seem to “always know” when to invest in gold, buy property, or jump into tech stocks before everyone else — they aren’t just lucky. They probably understand how the world works in cycles, just like Ray Dalio teaches in his book Principles for Dealing with the Changing World Order: Why Nations Succeed and Fail.
I’ve recently become super interested in economics, and decided to finally read the book (which has been gathering dust for the past few year), and it completely changed how I look at money, investments, and even my own future. This post is my personal breakdown of how you (and I) could have made money in the past 3 to 5 years if we applied Dalio’s principles earlier — and how we can still use these lessons moving forward.
What’s This Book About?
Ray Dalio explains that history moves in big economic and political cycles. Empires rise, become rich and powerful, then decline when they take on too much debt, lose innovation, and start fighting internally. This cycle happened to the Dutch Empire, British Empire, and now it’s happening to the U.S. — with China rising in the background.
The good news? If you can see the cycle before it happens, you can adjust your money moves before everyone else, and profit from the shifts.
7 Money Moves Inspired by Dalio (With Real-Life Examples)
1. Buy Inflation-Proof Assets When Governments Print Money
2020 Example:
Central banks around the world printed massive amounts of money to stimulate economies during Covid. If you understood that printing more money leads to currency devaluation and inflation, you would have bought:
- Gold (a classic inflation hedge)
- Bitcoin (a new form of digital gold)
Outcome Today (2025):
- Gold has steadily increased in value.
- Bitcoin went from around USD 10,000 in 2020 to over USD 80,000 today.
Key Takeaway: When governments print money excessively, invest in hard assets (gold, property, crypto, commodities) that protect value when paper money loses it.
2. Invest in Rising Powers Like China
2020 Example:
Dalio predicted that China would continue to rise economically and technologically. Smart investors diversified into:
- Chinese tech stocks like Alibaba (BABA) and Tencent.
- Funds like Emerging Markets ETFs.
Outcome Today (2025):
- Despite some political bumps, Chinese companies have expanded, and long-term investors have seen positive returns.
Key Takeaway: Don’t put all your investments in just one country (like Malaysia). Spread it across rising powers to capture future growth.
3. Follow Technology Disruption During Crises
2020 Example:
The pandemic accelerated digital transformation — especially for cybersecurity companies like:
- Palo Alto Networks (PANW)
- Zscaler (ZS)
Outcome Today (2025):
- These stocks have surged due to higher demand for cloud security and remote work solutions.
Key Takeaway: When global events force new behaviors, invest in the tech that supports those changes.
4. Build a Business Around Financial Stress (or Education)
2020 Example:
When people lost jobs and worried about money during the pandemic, there was a surge in demand for:
- Financial education (how to invest, budget, save money)
- Online side hustle ideas (freelancing, ecommerce)
Outcome Today (2025):
- Businesses and content creators in the personal finance niche have grown massively.
- Online course creators teaching “how to make money online” made millions.
Key Takeaway: In times of uncertainty, help people solve their biggest problems (in this case, money), and they will pay for it.
5. Use Cheap Debt to Buy Real Estate
2020 Example:
Interest rates were at historic lows. If you understood the cycle, you would know:
- Low rates = Cheap loans = Time to buy property.
- Inflation = Asset prices (like property) go up later.
Outcome Today (2025):
- Property prices have surged, especially in desirable locations.
- Investors who locked in low rates have built wealth through capital appreciation and rental income.
Key Takeaway: Cheap debt is a gift if you use it to buy income-generating assets, not liabilities.
6. Diversify Globally
2020 Example:
If you only invested in Malaysia or any single country, you were fully exposed to that country’s political, economic, and currency risks.
What smart investors did:
- Diversified into global ETFs (covering U.S., China, Europe, emerging markets)
- Held multiple currencies (USD, SGD, CNY)
Outcome Today (2025):
- Diversified investors had smoother returns and less volatility.
Key Takeaway: Global diversification protects your money from local political and economic shocks. You can start today by investing through platforms like IBKR, Moo Moo or the OG investing platforms like OctaFX, XM, and more. Just don’t risk it too much with the crazy leverage.
7. Follow New Global Trends (Like Sustainability & EVs)
2020 Example:
With climate change becoming urgent and governments pushing for green energy, smart investors backed:
- Renewable energy stocks (solar, wind, battery technology)
- EV companies (Tesla, BYD)
Outcome Today (2025):
- These sectors have become huge wealth creators for early investors.
Key Takeaway: Every major shift (technology, politics, climate) creates new industries. Position yourself early.
Summary:
| Strategy | Action (What You Should Have Done) | Why It Worked (The Logic) | Outcome Today (2025) | Lesson for the Future |
|---|---|---|---|---|
| Inflation Hedge | Buy Gold, Bitcoin, Commodities (Oil, Copper) | When governments print a lot of money, the value of money drops. Hard assets (that are limited in supply) retain their value or even appreciate. | Gold increased steadily. Bitcoin surged from USD 10,000 to over USD 80,000. Commodity prices climbed. | When you see money printing or inflation headlines, move some money into hard assets (gold, real estate, commodities, bitcoin). |
| Bet On Rising Powers | Invest in Chinese Tech (Alibaba, Tencent), Emerging Market ETFs | Dalio’s research showed China rising economically, technologically & militarily. As a result, capital flows into China-based investments. | Despite some political volatility, long-term holders of well-positioned Chinese companies saw gains. | Watch for the next rising powers (e.g., India, Southeast Asia), and invest in them early. |
| Follow Tech Disruption | Buy Cybersecurity Stocks (Palo Alto, Zscaler), Cloud Tech, E-commerce Platforms | Pandemic forced rapid digital adoption (work-from-home, online shopping, cloud computing). This fueled demand for digital security and infrastructure. | Cybersecurity and cloud stocks massively outperformed the broader market. | Every crisis accelerates a new type of tech adoption — study the pain points created by crises and invest in companies solving them. |
| Profit from Financial Stress | Create Online Courses, Financial Literacy Products, Side Hustle Guides | People losing jobs = higher demand for financial education and side income solutions. Smart creators launched helpful content and digital products. | Finance bloggers, course creators, and side hustle coaches made six or seven figures during this period. | When people panic about money, help them solve that problem. Content around saving, investing, and earning becomes very valuable. |
| Use Cheap Debt | Buy Property (Lock in Low Interest Rates) | Global central banks slashed rates to almost 0% in 2020 to “save” economies. Low borrowing costs made property much cheaper to finance. | Those who locked in low rates bought property at the right time, seeing both appreciation and rising rents later. | When interest rates hit rock bottom, it’s time to buy long-term assets — property, land, or even productive businesses. |
| Diversify Globally | Invest in Global ETFs, Hold Multiple Currencies (USD, SGD, CNY) | Relying on only Malaysian assets exposes you to local risks (political instability, ringgit depreciation). Global diversification reduces these risks. | Investors who spread their money across regions enjoyed steadier returns and protected purchasing power. | Build a globally diversified portfolio — stocks, bonds, property, currencies — so no single country can crash your wealth. |
| Ride Global Megatrends | Buy Renewable Energy, Electric Vehicle (EV), Battery Tech Stocks | Governments pushed hard for green energy transition and carbon neutrality. Policy changes create tailwinds for renewable & EV sectors. | Renewable energy and EV sectors saw massive capital inflows and became some of the best-performing sectors. | Watch government policy shifts — whether it’s climate, AI, healthcare, or geopolitics. These often create new investment waves. |
Bonus: How to Future-Proof Yourself Using This Table
If you apply these same 7 lenses to today’s news, you’ll always be one step ahead:
👉 Is the government printing money? Look at inflation hedges. Here are some real life examples that can protect against inflation.
- Real Estate Investment Trusts (REITs): REITs can provide a hedge against inflation, as property values and rental incomes often rise with inflation.
- Treasury Inflation-Protected Securities (TIPS): TIPS are U.S. Treasury bonds indexed to inflation, ensuring your investment keeps pace with rising prices.
- Gold: Historically, gold has been viewed as a safe haven during inflationary periods.
👉 Is a new tech trend emerging? Identify the early winners.
- Chinese Technology Companies: Despite economic challenges, Chinese tech giants like Alibaba and Tencent are attracting investors due to their innovation and government support. Hey, BYD is showing promising growth as well 🙂
- Emerging Market ETFs: Funds like the iShares MSCI Emerging Markets ETF (EEM) provide exposure to a broad range of emerging economies poised for growth.
- Indian Consumer Goods Companies: With a growing middle class, companies like Hindustan Unilever are positioned to benefit from increased domestic consumption.
👉 Are people panicking about money again? Solve it with digital products. Here are some other ideas to take advantage of this:
- Personal Finance Blogs: Starting a blog that offers budgeting advice, investment strategies, and debt management tips can attract a wide audience.
- Financial Literacy Workshops: Hosting workshops or webinars to educate individuals on managing finances effectively can be both impactful and profitable.
- Budgeting Apps: Developing or investing in user-friendly budgeting applications can meet the increasing demand for personal finance management tools.
- Promote Money Making Courses as an affiliate: This is what I personally do, where I promote an amazing course called Digital Wealth Academy.
👉 Are interest rates dropping again? Consider good debt to buy more assets. For example, you can try invest in these using bank’s money hehe:
- Residential Real Estate: Purchasing rental properties can provide steady income and potential appreciation, especially in growing markets.
- Commercial Real Estate: Investing in commercial spaces, such as office buildings or retail centers, can yield substantial returns as businesses expand.
- Dividend-Paying Stocks: Acquiring shares in companies with a history of paying dividends can offer regular income streams.
👉 Is a new country rising? Diversify into their markets and currency. For example:
- International ETFs: Invest in exchange-traded funds that track global indices, providing exposure to international markets.
- Foreign Currency Accounts: Open accounts denominated in stable foreign currencies to hedge against ringgit fluctuations.
- Overseas Properties: Consider investing in real estate in countries with stable markets, diversifying asset holdings.
👉 Are governments pushing a big agenda (like AI or green tech)? Invest early into those sectors. For example:
- Electric Vehicle (EV) Sector: Invest in companies involved in the EV supply chain, such as battery manufacturers or charging infrastructure providers.
- Healthcare Technology: Invest in firms integrating technology with healthcare, improving patient care and medical services.
- Sustainable Agriculture: Support or invest in agricultural practices that focus on sustainability and technology integration.
Final Thoughts
These 7 strategies aren’t just “good ideas” — they’re proven moves based on how the world actually works. Ray Dalio’s Changing World Order doesn’t predict every small detail, but it gives you a big picture roadmap for where to look, when to invest, and how to protect your money during turbulent times.
If you want to truly future-proof your finances (and maybe even build real wealth), I highly recommend you read the full book.
👉 Grab Ray Dalio’s Changing World Order on Amazon
(P.S. This is my affiliate link — if you buy through it, Amazon will bless me with some duit kopi. So more duit kopi = more motivation & energy to read other books! Thank you for your support!)