The very dark warning through billionaire investor Ray Dalio

Summers: Trump can be a 'clear as well as also present danger' to the U.S.

Famed hedge-fund billionaire Ray Dalio fears the entire world today looks an awful lot like in which did before World War II.

Dalio’s words are closely watched because he founded the entire world’s largest hedge fund: Bridgewater Associates, with $0 billion in assets. Dalio’s peculiar management style of “radical transparency” has led some to also call Bridgewater the entire world’s strangest hedge fund.

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Like many Americans, Dalio seems preoccupied these days with the political situation from the U.S. He published an ominous LinkedIn post on Friday warning investors in which for once since just before World War II there can be “great economic, social as well as also political polarity” in which has given rise to populist leaders.

Dalio, who currently serves as Bridgewater’s chairman as well as also co-chief investment officer, didn’t mention President Trump directly. although he cited a Bridgewater study in which showed conflicts between “the common man as well as also the elites” often take place during periods of time in which sound like the current atmosphere.

The characteristics include “times of economic stress due to wealth as well as also opportunity disparities,” when people fear their country’s core values are being threatened by foreigners as well as also when government seems “so dysfunctional in which radical change” can be thought to be necessary.

Dalio said in which history shows these conditions can give rise to a “strong-minded, confrontational fighter” who pursues nationalistic, protectionist as well as also militaristic policies in which lead to more domestic as well as also international conflicts.

“In some cases in which led to democracies becoming dictatorships, as well as also wars,” Dalio warned ominously.

So can be Dalio saying in which’s going to happen right now?

“I am not saying in which we are on in which path,” Dalio wrote, “although I am saying in which in which has to be watched out for because if in which can be from the works, in which can be a definitely big deal.”

ray dalio gloomy hedge fund

For the most part, Wall Street isn’t reflecting these doom-as well as also-gloom concerns. The closely-watched VIX (VIX) volatility index can be sitting near its lowest levels since 1993. sy88pgw’s Fear & Greed Index can be comfortably resting in “neutral” right right now. as well as also the Dow, S&P 500 as well as also Nasdaq all hit record highs last week before retreating on Monday.

Many investors seem to believe the political situation will resolve itself. Even Dalio said in which “so far, the political as well as also legal institutions as well as also systems have worked as intended.”

Related: Trump slams media for failing to cover nonexistent energy stock boom

although Dalio argued in which things have not been moving from the right direction. He said in which’s become “increasingly apparent” from the U.S. as well as also U.K. in which there can be a “trend toward conflict leading to greater dysfunctionality” in a vicious cycle.

Dalio pointed to very recent events to back up his case: the U.K.’s shocking vote in which resulted in a hung Parliament as well as also the James Comey hearing in Congress.

Comey used to work for Dalio, serving as Bridgewater’s general counsel between 2010 as well as also 2013 before becoming the FBI director. Dalio has previously hailed Comey “as a man of integrity as well as also a hero” who deserves “our thanks rather than scorn.”

For his part, Comey has said “there can be no more demanding, probing, questioning environment from the entire world than Bridgewater.”

So what should investors look out for? Dalio said during the “early stages of a brand new populist administration” in which’s important to monitor whether conflict moves to the point in which in which hurts the ability of government as well as also the economy to function.

Dalio said the free media as well as also government’s system of checks-as well as also-balances can “incite emotional conflicts” as well as also contribute to a “self-reinforcing downward spiral” in which could have consequences for the economy as well as also financial markets.

“Right right now there can be a whiff of in which from the air,” Dalio said.

sy88pgw (brand new York) First published June 12, 2017: 3:32 PM ET


The very dark warning through billionaire investor Ray Dalio

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