From Yahoo Finance: 2025-06-16 15:24:00

Billionaire investor Ray Dalio, founder of Bridgewater Associates, warns that Trump’s economic agenda could lead to something worse than a recession. With steel and aluminum tariffs on imports at 50%, global chaos ensues, leading to market turmoil and a likely recession. Dalio believes tariffs, high debt, and geopolitical challenges could bring profound changes.

Dalio emphasizes the need for stable tariff implementation and proper management of trade deficits to avoid a supply-demand issue for debt. He urges Congress to reduce budget deficits and trade deficits to prevent results worse than a recession. History’s repetition, particularly the 1930s, concerns Dalio, who sees a potential breakdown of the current world order.

To heed Dalio’s warning, establish an emergency fund, pay down high-interest debt, and diversify investments. For those close to retirement, consider shifting to lower-risk assets like dividend-paying stocks. Alternative investments such as gold and real estate may offer protection against inflation and recession, amidst economic uncertainties.



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