Ray Dalio out with his latest note
Ray Dalio sees similarities to 1937 in how the world is economically and socially divided.
"I can't say how bad this time around will get," he wrote in a LinkedIn post.
His main thrust is that conflicts on different sides are now so dramatic that "fighting to the death is probably more likely than reconciliation."
He points to the wealth gap in the United States and growing political divide.
"For example, Donald Trump's approval rating of 35% is a result of 79% support among Republicans and 7% among Democrats," he notes, citing Gallup.
Dalio sees few people working towards reconciliation.
"While I see no important economic risks on the horizon, I am concerned about growing internal and external conflict leading to impaired government efficiency (e.g. inabilities to pass legislation and set policies) and other conflicts," he writes.
Here is Dalio on central banks:
