According to Dalio, there is a deepening political division in the United States, which poses serious challenges to the country.
Both candidates worry me
– he told CNBC. The billionaire believes that a strong leader capable of implementing far-reaching reforms would be needed.
The guru pointed out that Republican presidential candidate Donald Trump’s economic policies “much more capitalistic“, than that of the Democratic candidate Kamala Harris, which may be more favorable for the domestic capital markets. However, he warned that whichever party comes to power,
the country will have to face a significant budget deficit.
Dalio expressed concern as the US national debt increases also in connection. He pointed out that about a third of US Treasuries are owned by foreigners, which could cause supply and demand problems in the future. He added that in the event of a possible economic downturn, serious internal political and social tensions could develop.
Regarding investment strategies, Dalio advised that
gold should play an important role in a diversified and balanced portfolio,
because this means of escape reduces the risk.
Cover image credit: Jeenah Moon/Bloomberg via Getty Images
Source: www.portfolio.hu
