Ray Dalio: ‘Restructuring Will Take 3-5 Years’

“Not only will individuals want to ensure their self sufficiency, but countries are going to want to have self-sufficiency because they’re also vulnerable,” said Dalio in the interview.

Dalio, whose $18 billion net  worth makes him the 46th richest person in the world, said masks and ventilators manufactured and shipped from China, exemplified a “vulnerability” for the United States, and that “we’re going to want to build those things to build self-sufficiency”—a process that will cause inefficiency.

Dalio reiterated concerns about partisan politics that he voiced in an April 8 Ted Connect interview: “If we fight with each other, internally, or even externally, it’s going to make this thing very painful…how we are going to be with each other is the most important thing.”

The founder of the largest hedge fund in the world, with $160 billion in assets under management, also warned that countries will need to tap into reserves to recover from the coronavirus crisis, “some of them will run out of those savings, even the rich countries…a lot of the world will not be protected.”

Global Inflation and rising saving rates can also be expected, said Dalio.