Ray Dalio: 'We're in a Kind of World War'

Ray Dalio, founder of Bridgewater Associates, the world's largest hedge fund, commented on the announcement of a two-week ceasefire between the US and Iran, stating, "one should not focus only on short-term news," and characterized the current international situation as "a kind of world war underway." In a LinkedIn post, Dalio argued that the present military confrontations and geopolitical-economic tensions bear similar resemblances to past world wars. He shared these views in an interview on the 8th (local time) while visiting Shanghai, China.

Dalio indicated that the US-China summit scheduled for May would not be limited to trade negotiations but would also focus on capital flow issues. He publicly raised the possibility that beyond trade disputes and the competition for technological supremacy, capital movement and the reshaping of the international financial order could emerge as agenda items for the summit.

Citing a lack of communication as the core reason for US-China conflict, Dalio said, "The world order is changing, and the two leaders must discuss how best to cope with this change." He added that if the leaders of the two countries demonstrate mutual understanding and jointly seek solutions, it would improve investor sentiment and positively impact the market.