Americans are divided socially and economically in ways that have not been seen since the worst days of the Great Depression and as the world was heading into another global conflict, hedge fund king Ray Dalio said Monday.
In an essay on LinkedIn, the head of Bridgewater Associates compared the current U.S. climate to 1937, as Adolf Hitler rallied Germans ahead of World War II and the U.S. plunged further into the economic abyss that had begun in 1929.
"It seems to me that we are now economically and socially divided and burdened in ways that are broadly analogous to 1937," Dalio wrote. "During such times conflicts [both internal and external] increase, populism emerges, democracies are threatened and wars can occur. I can't say how bad this time around will get. I'm watching how conflict is being handled as a guide, and I'm not encouraged."
The missive comes as U.S. markets appear to have hit a wall, political conflict in Washington has escalated, and thousands are protesting in the streets over historic monuments.
Dalio's view on how it all turns out is not optimistic.