The past 24 hours – with Jim Comey’s testimony and the UK’s snap election – are a cause for alarm to the founder of the world’s largest hedge fund.
The US and UK, in effect, are becoming dysfunctional, billionaire Ray Dalio said Friday in a statement posted to his LinkedIn page.
“Over the last 24 hours we’ve seen developments in the US (pertaining to the issues surrounding Jim Comey’s testimony) and the UK (concerning no UK party having a ruling majority and the threat of a left populist leader emerging),” said Dalio, who founded $ 150 billion Bridgewater Associates. “These developments entail the risk that political conflicts will lead to reduced government effectiveness in these two countries at especially challenging times.”
He added: “The trend toward conflict leading to greater dysfunctionality, leading to greater conflict, in a self-reinforcing way is increasingly apparent in the US and UK.”
“These conditions can reinforce emotional and antagonistic polarity …and that can create a self-reinforcing downward spiral,” he said.
Dalio has been increasingly public in his views on politics over the past several months. Earlier this year, he launched a Twitter feed and has been known to increasingly post his musings, whether about news coverage of his hedge fund that he doesn’t like or about support for Jim Comey, a former Bridgewater employee. Earlier this week, Dalio wrote about his concerns over President Trump choosing a small part of America over the world.
Dalio and his $ 150 billion investment firm have speculated on Trump, and his implications for markets, for months, though those predictions haven’t always played out.
Last year, Bridgewater told clients on the day of the election that markets would slump if Trump were elected. (They have since rallied.) More recently, Bridgewater said stocks would drop if Trump were impeached, according to a client note reviewed by Business Insider.Business InsiderFinance – Business Insider