News summary

Ray Dalio warned that the United States is on the verge of "civil war" and political divisions may challenge market stability.

Newsletter text

[The internal division stage in the United States attracts attention, and Dalio is optimistic about the future of the country] This week, Rei Dalio, founder of Bridgewater Fund, mentioned in an interview with Nikkei Shimbun that the United States may be in the fifth stage of its "six-stage theory of national internal cycle." He stressed that although the current situation is similar to the early days of the "civil war", it is not the case.chateaubaccaratThe situation is irreversible. Dalio expressed concern that state and local governments might diverge from the federal government, but he also believed that through the orderly handling of the government, this chaos and functional mismatch would not turn into more serious conflicts.