Ray Dalio, founder of the world's largest hedge fund Bridgewater Associates, believes that market participants should prepare for the upcoming new economic catastrophe, which may be caused by a conflict between China and the United States due to misunderstanding.
Dalio noted that future catastrophes are inevitable, in accordance with the historical patterns of the last 500 years, and at the same time added that if the conflict between the United States and China does not undermine the economy, then it will do something else. Earlier, Dalio noted that America's attempts to make China and its culture "more American" could eventually have unpleasant consequences and intensify the trade war that was launched by the Trump administration in 2018.
According to a study by Moody's Analytics, the trade war with China cost Americans at least 300,000 jobs in just the first year of its existence. Meanwhile, a study by the Federal Reserve Bank of New York showed that the trade war cost American companies $1.7 trillion in market capitalization.
Meanwhile, Dalio expressed hope that the US and China will be able to settle their long-standing dispute, resulting in increased mutual understanding and reduced propensity to fight.