Ray Dalio Warns of Rising U.S. Socio-Economic Risks, Advises Risk Mitigation for Investors and Crypto Traders

Ray Dalio, the founder of Bridgewater Associates, has reiterated his warning that the United States is entering a critical phase of systemic and societal risk, based on his ’Big Cycle’ framework. According to Dalio, the U.S. is now in the fifth stage of decline, marked by rising government debt, escalating wealth inequality, and abrupt economic shocks that fuel social division and political polarization. Recent events, including civil unrest and the federal government’s crackdown on undocumented immigrants, underscore these growing tensions, which Dalio says could push the nation into a sixth and final phase — revolution or internal conflict — if left unaddressed. Dalio also highlights diminished trust in media, the surge in populism, and bureaucratic stagnation as warning signs. He advises investors to prepare by diversifying assets, reallocating geographically, and focusing on sectors that boost productivity like technology, education, and infrastructure. Crypto traders should pay close attention to heightened U.S. political instability and economic uncertainty, as these dynamics may trigger increased volatility and shift capital flows, possibly impacting the demand for cryptocurrencies as alternative assets.