Ray Dalio built the largest and most successful hedge funds in America. Bridgewater Associates was the largest hedge fund in the world last year, with assets under management of $124 billion.
Dalio retired from Bridgewater and became one of the world’s richest men, with a net worth of $16 billion. He spends much of his time today speaking at global conferences and appearing on TV. He is popular because of decades as one of America’s great investors and because his views are often controversial.
Dalio’s recent comments concern his fear that the Trump tariffs will badly damage the global economy and financial system.
Dalio told NBC’s “Meet the Press” that he worries about a catastrophe: “I think that right now we are at a decision-making point and very close to a recession. And I’m worried about something worse than a recession if this isn’t handled well.”
Dalio is also worried about China’s ownership of U.S. debt. China could sell this off quickly, sharply decreasing America’s borrowing power and raising the rate the United States would have to pay to finance its debt.
Dalio reinforced his NBC in comments posted on X: “The far bigger, far more important thing to keep in mind is that we are seeing a classic breakdown of the major monetary, political, and geopolitical orders. This sort of breakdown occurs only about once in a lifetime, but they have happened many times in history when similar unsustainable conditions were in place.”
Dalio has been wrong in the past. He has been a doomsayer about the global economy before. However, if he is right this time, the world will be in for a period much worse than the Great Recession.
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