Bridgewater Associates founder Ray Dalio said his firm is
tactically reducing our risk in light of recent
political tensions in the country and their potentially
negative effects on government efficiency, according to a new
Dalio, who frequently posts his musings on the economy on
the social media outlet, wrote on Monday that he thinks
Americans are the most socially and economically divided they
have been since the 1930s.
Conflicts have now intensified to the point that
fighting to the death is probably more likely than
reconciliation, Dalio wrote in the piece, entitled
The Principles That Divide Us Might be Greater Than Those
That Bind Us Together.
[II Deep Dive: Ray Dalio: Fired FBI Director James Comey is a
The post, which encourages readers to practice the art of
thoughtful disagreement, comes amid
a turbulent month in U.S. politics, marked by escalating
nuclear rhetoric between U.S. President Donald Trump and North
Korean leader Kim Jong Un and Trumps much-derided
response to the neo-Nazi rally in Charlottesville, Virginia
that left three people dead and dozens injured. The
presidents two CEO advisory councils were disbanded after
several corporate chiefs resigned in protest following
Trumps controversial press conference on Tuesday in which
he appeared to walk back earlier remarks denouncing the
Dalio wrote on Monday that gaps in wealth and income are at
their widest since the 1930s, at the same time that political
disagreement is increasing.
It seems to me that we are now economically and
socially divided and burdened in ways that are broadly
analogous to 1937, Dalio wrote in his post.
Further, Dalio noted that while the risks he sees are not
economically important right now, he is concerned about
growing internal and external conflict leading to
impaired government efficiency.
Dalio pointed to a Gallup poll that showed how among
Republicans, President Donald Trumps approval rating is
79 percent, while among Democrats, its 7 percent.
This is further punctuated by the 61 percent of Trumps
supporters who say that they cant think of anything that
the president could do that would change their views.
Conversely, 57 percent of those who disapprove of Trump say
they cannot think of anything that he could do to make them
approve of his presidency.
In other words, the majority of Americans appear to be
strongly and intransigently in disagreement about our
leadership and the direction of our country, Dalio wrote.
He added that these people seem more inclined to fight about
their views rather than find common ground.
Whether, and how effectively, these differences are resolved
could have a greater impact on the economy than monetary or
fiscal policies, according to Dalio.
This isnt the first time Dalio has commented on
economic conditions following Trumps election. Dalio had
initially expressed optimism about Trumps pro-business
policies and their possible effect on the economy but quickly
grew more critical of the president. In March, Dalio detailed
the rise of populism in the U.S., and how the ideology
is at its highest since the 30s.
In July, he warned investors that the era of central
banks creating favorable economic conditions is almost
His latest missive struck a notably bleaker tone, as one
I get it, a guy can drown in an average of six inches
of water, so can a political system, a LinkedIn user
commented. The great income disparity of our time is
testament to this.
Dalio isnt the only corporate leader expressing
wariness about the current political climate. JPMorgan CEO
Jamie Dimons memo to employees last week saying he
strongly disagreed with President Trumps
reaction to the events in Charlottesville was followed by an
announcement that the bank will pledge $1 million to anti-hate
groups. Meanwhile, Goldman Sachs CEO Lloyd Blankfein took to
Twitter to express his sentiments on the events.
Wish the moon wasnt the only thing casting a
shadow across the country, wrote Blankfein, referencing
Mondays historic solar eclipse. We got through one,
well get through the other.