A postelection America concerns U.S. billionaire Ray Dalio, who has repeatedly called for reforms in a political environment filled with what he perceives as irreconcilable differences between the Democratic and Republican parties. Speaking at the Future Investment Initiative conference in Saudi Arabia, Dalio, the founder of Bridgewater Associates, discussed significant geopolitical and election-related worries, the increasing U.S. deficit, and strategies for investors to optimize their portfolios.
Expressing his apprehension, Dalio stated to CNBC that both presidential candidates worry him due to the divisive nature of politics, emphasizing the need for unity and significant reforms led by a strong middle-ground leader. He highlighted the contrasting economic approaches of Republican candidate Donald Trump and Democratic candidate Kamala Harris, noting Trump’s more capitalist stance as potentially more favorable for domestic capital markets but cautioning about the looming deficits under either party’s governance.
Dalio underscored the importance of bridging the political divide and implementing substantial reforms to address concerns such as the escalating national debt, internal and external conflicts, and environmental issues. He also raised alarms about the growing U.S. Treasury supply, emphasizing the potential risks for investors due to the imbalance between supply and demand, particularly with a significant portion of U.S. Treasurys held by foreign entities.
Regarding portfolio management, Dalio recommended including gold as part of a diversified and balanced strategy to mitigate overall risk in investment portfolios.
