DALIO: 'I'm worried about what the next downturn might look like'

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April 11, 2017 1:31 PM

Ray Dalio, the founder of the world's largest hedge fund, Bridgewater Associates, says he's worried about what the economy will be like in two to three years.

Raymond Dalio, Founder, Chairman and Co-Chief Investment Officer of Bridgewater Associates, speaks at the Milken Institute Global Conference in Beverly Hills, California, U.S., May 2, 2016. REUTERS/Lucy Nicholson

Ray Dalio, the founder of the worlds largest hedge fund firm, Bridgewater Associates, says hes worried about what the economy will be like in two to three years.

"I'm worried about what the next downturn might look like," Dalio said.

He made the comments in an interview with Business Insider's global editor-in-chief, Henry Blodget, on "The Bottom Line," Business Insider's new weekly business news show. You can watch the full interview here.

"All of these tensions will be exacerbated," Dalio added. "The wealth gap and the tensions between the groups will be exacerbated — the effectiveness of monetary policy in stimulating an economy is less than it used to be."

In addition, Dalio said, "the asset prices have benefited and are now high as a result of the liquidity that has been put in." He added: "We're near the best we can be."

"There is nothing immediately that's scary," he said, adding that "to take a two- or three-year perspective, I'm concerned."

The Westport, Connecticut-based Bridgewater managed about $103 billion in hedge fund assets as of midyear 2016, according to the HFI Billion Dollar Club ranking, making it the world's biggest hedge fund. The firm manages about $150 billion firmwide.

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