Ray Dalio, legendary investor and founder of Bridgewater Associates, the world’s largest hedge fund with $124 billion in assets, is worried about the post-election situation in the United States. The American veteran believes that a victory for Donald Trump or Kamala Harris would not be good for the future of the country’s economy.
“Both candidates worry me,” he admitted during a recent interview for the CNBC. “This war between the left and the right is a problem as they become more extreme. I think we need Americans to come together, to find common ground, and for major reforms to be made… I think “What is needed for this is a strong leader from the center who will make major reforms… None of the candidates convinced me,” he said.
“We have a real debt problem… I think that one person’s debts are another person’s property”
For Dalio, the national deficit problem continues to worry him because both Democrats and Republicans will generate more debt, meaning the numbers won’t work out as well for the country in the long run. “We have a real debt problem…I think one person’s debt is another person’s property,” Dalio said.
Investors remain concerned about the increasing supply of U.S. Treasuries, with about a third of Treasuries in foreign hands, creating a supply and demand problem that poses more upside risks than downward for investors.
Besides debt, Dalio considers other important issues. In his latest speech in Asia, the 75-year-old investor stressed that “natural phenomena, droughts, floods and pandemics have killed more people and been responsible for more changes in the domestic and international order “. In this sense, he emphasizes that the cost of climate change is about to increase. Another issue that worries you is related to the internal and external conflicts that these elections can generate.
Finally, for those looking to protect their investments, Dalio advises that gold should be part of a well-balanced and diversified strategy, as it helps reduce the overall risks of any portfolio.
