Weekend reads: Ray Dalio on what business and political leaders must do to keep the U.S. from splintering

Ray Dalio is a billionaire fund manager. He’s an ardent capitalist but sees an imbalance that threatens the U.S., which he calls a “75-year empire” in decline.

In an interview with Jonathan Burton, Dalio lays out what he thinks U.S. business leaders and politicians should be doing to better allocate wealth and what investors should do to protect themselves.

A few big winners and a lot of pain

An index may not reflect what is really going on in the stock market. The S&P 500 Index
SPX,
-1.11%

 has returned 5.3% this year, with dividends reinvested, through Sept. 19. But the benchmark index is weighted by market capitalization, with the FAANG stocks, plus Microsoft
MSFT,
-1.24%
,
making up 24% of its total value. Look at how well those tech giants have performed this year:

Now consider that among the S&P 500, 55% of stocks are actually down this year,

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