Ray Dalio expresses concern about America after the election: 'Candidates' worries bother me'

Ray Dalio, a US billionaire, is concerned about the political landscape in post-election America, where he sees irreconcilable differences between the Democratic and Republican parties, and has repeatedly called for reforms.

At the Future Investment Initiative conference in Saudi Arabia on Wednesday, the founder of Bridgewater Associates discussed major geopolitical and election-related concerns, the impact of rising U.S. deficit, and how investors can optimize their portfolios.

"Dalio expressed concern about both candidates to CNBC, stating that their left-right fighting and extremism is a problem. He believes there needs to be a leader who brings Americans together and makes great reforms, but neither candidate does that for him."

According to Dalio, Trump is more capitalist than Harris, making him better for domestic capital markets. However, both candidates have significant differences, particularly in tax policies. Trump's plan to increase tariff revenue could lead to higher prices if the revenue is not used to boost internal productivity.

Dalio stated that the consequences of the election are a left-right question, which is unfortunate because the country needs to come together and make great reforms. He pointed out that the debt, internal conflict, external conflict, and the cost of the climate are all concerns.

Foreigners hold about a third of U.S. Treasurys, leading to a supply-demand issue with more upside than downside risk for investors, according to Dalio.

"We face a significant debt issue. As Dalio stated, 'one man's debts are another man's assets.' The treasury market serves as the foundation for all capital formation. However, when combined with internal conflict, a downturn could exacerbate the issue, leading to political and social unrest."

The renowned investor advised that gold should be included in a diversified and balanced strategy to minimize overall risk when presenting one's portfolio.