Ray Dalio is a billionaire hedge fund manager based out of New York City. Many people follow Ray in his macro investing style and famously predicted the 2008 financial crises. Ray Dalio recently stated that America is very close to a recession, and fears that something worse could happen in the future. While Dalio and his supporters certainly are firm in their belief, not everyone is so confident.
Ray Dalio Claims America is Close to a Recession
Ray Dalio met with NBC News to discuss his thought on the current economic situation. Dalio said “I think that right now we are at a decision-making point and very close to a recession.” Dalio also stated that he is “worried about something worse than a recession if this isn’t handled well.”
It’s safe to say that Dalio is not a fan of Trump nor his tariffs. Dalio claims that the tariffs are “so far very disruptive.” He went on to say that these economic policies are “like throwing rocks into the production system” and that the impact “would be enormous in terms of the efficiency of the whole world.” When asked about this, Dalio said “If you take tariffs, if you take debt, if you take the rising power challenging existing power, if you take those factors and look at the factors, that — those changes in the orders, the systems are very, very disruptive. How that’s handled could produce something that is much worse than a recession. Or it could be handled well.”
In Dalio’s mind, the worst case scenario is quite dismal. He said that this “could be like the breakdown of the monetary systems of ’71. It could be like 2008. It’s going to be very severe.” However, Dalio still claims that “it doesn’t need to happen” if the US changes its act.
While Dalio is confident that the US is close to a recession, so far it seems that the Trump administration disagrees. Trump and his team are currently working with other countries to negotiate over tariffs and economic policies. While Trump has not responded to Dalio’s claims, he and his administration don’t seem to be bothered by it.
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