economy
February 3, 2026
Ray Dalio warns the world is ‘on the brink’ of a capital war
The billionaire Bridgewater founder also weighed in on investing in gold after the metal was gripped by a sharp sell-off.
TL;DR
- Ray Dalio warns the world is "on the brink" of a capital war.
- A capital war involves weaponizing money through measures like trade embargoes and blocking access to capital markets.
- Mutual fears between nations, such as European fears of sanctions on U.S.-denominated assets, contribute to this risk.
- European investors are significant holders of U.S. Treasurys.
- Capital controls are being implemented globally.
- Historically, capital wars have occurred alongside major conflicts, like U.S. sanctions on Japan before WWII.
- Similar tensions could arise between the U.S. and China or even between the U.S. and Europe due to capital imbalances.
- Dalio suggests gold remains a good place to store money, acting as an effective diversifier for portfolios.
- He advises maintaining a certain percentage of a portfolio in gold, especially for central banks and sovereign wealth funds.
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