Ray Dalio speaks with CNBC at the Future Investing Initiative in Riyadh, Saudi Arabia on October 30, 2024.
CNBC
American billionaire Ray Dalio is worried about the United States after the election. He repeatedly called for reform in a polarized political climate due to irreconcilable differences between the Democratic and Republican parties.
The founder of investment firm Bridgewater Associates spoke at the Future Investment Initiative conference in Saudi Arabia on Wednesday, highlighting key geopolitical and election-related concerns, the issue of the rising U.S. deficit, and how investors are investing in their portfolios. He talked about how to optimally place them.
“I’m concerned about both candidates,” Dalio told CNBC. “This battle between the left, the right, and each other becomes more problematic as it gets more extreme. I think we need to unite Americans and make big changes in the middle. … We need strong leaders.” I believe it will bring about great change… neither candidate does that for me. ”
Dalio said Republican presidential candidate Donald Trump is “much more capitalist” than Democratic candidate Kamala Harris, and therefore better for domestic capital markets. But he warned that an economy run by either party would result in huge deficits. He also said there are major differences between the two candidates, including their tax policies, and that President Trump’s plan to increase tariff revenue could lead to higher prices, depending on how much of that revenue is converted into domestic productivity. He pointed out that there is a gender.
Dalio said the election result was “unfortunate because it’s really a left-right issue and we need to find a smart way to unite the country and make big changes. We need to do that.” Ta. “We’re concerned about debt, we’re concerned about internal conflict, we’re concerned about external conflict, and certainly we’re concerned about climate and climate costs.”
Dalio said he remains concerned about the increase in the supply of U.S. Treasuries. He said about one-third of U.S. Treasuries are held by foreigners, leading to a supply-demand problem in which the upside risk to investors is greater than the downside risk.
“We have a real debt problem. … I think one person’s debt is another person’s asset,” Dalio said. “The government bond market is the basis of all capital formation. At some point, when you combine it with the issue of domestic conflicts, if there is an economic downturn, that is, when an economic downturn arrives, you start to worry about domestic political and social conflicts. .”
The celebrity investor said that when setting up a portfolio, gold should be included as part of a diversified and balanced strategy that reduces overall risk.
