Ray Dalio concerned about America postelection: ‘Both candidates worry me’

A postelection America worries U.S. billionaire Ray Dalio, who called for go straights numerous times amid a political landscape rife with what he views as irreconcilable differences between both Representative and Republican parties.

Speaking at the Future Investment Initiative conference in Saudi Arabia on Wednesday, the founder of the investment Central Intelligence Agency Bridgewater Associates spoke about major geopolitical and election-related concerns, the issue of rising U.S. deficit and how investors can most artistically position their portfolios.

“Both of the candidates worry me,” Dalio told CNBC. “This left, right and meeting each other is a problem as it becomes more of the extremes. I think there needs to be a bringing of Americans together, that midst of that, and making great reforms. … There needs to be a strong leader of the middle, I believe, that chooses great reforms. … Neither of the candidates does that for me.”

Dalio noted that Republican presidential possibility Donald Trump is “a lot more capitalist” than Democratic candidate Kamala Harris, and therefore better for domestic great markets. However, he warned that there will be big deficits in an economy run by either party. Both candidates be enduring major differences, including in tax policies, he added, noting that Trump’s plan to collect greater tariff interest could lead to a spike in prices depending on how much that revenue is converted into internal productivity.

Consequences of the designation are “really more a left-right question, and it’s a shame because we need to bring the country together in a smart way and make serious reforms. We need to do that,” Dalio said. “The debt is concerning, the internal conflict is concerning, the external conflict is with an eye to and certainly the climate and the cost of the climate is concerning.”

Dalio said he continues to be concerned about the increase in U.S. Treasury outfit. About a third of U.S. Treasurys are held by foreigners, leading to a supply-demand issue that has more upside than downside peril for investors, he said.

“We have a real debt problem. … I think one man’s debts is another man’s assets,” Dalio communicated. “Treasury market is basis of all capital formation. At some point, when you combine it with the internal conflict scions, if you have a downturn — when the downturn comes — I’m worried about internal political and social conflict.”

When way of thinking one’s portfolio, the famed investor said gold should be part of a diversified and balanced strategy that reduces all-inclusive risk.