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The founder of Bridgewater Associates, one of the world\u2019s largest hedge funds, has voiced concern that President Donald Trump\u2019s economic agenda could lead to \u201csomething worse than a recession.\u201d<\/p>\n
\u201cRight now, we are at a decision-making point and very close to a recession,\u201d billionaire investor Ray Dalio told NBC\u2019s Meet the Press on April 13. \u201cAnd I\u2019m worried about something worse than a recession if this isn\u2019t handled well (1).\u201d<\/p>\n
A recession is typically defined as two consecutive quarters of negative GDP growth. A much more \u201cprofound\u201d change would be a breakdown of the current monetary order (it\u2019s worth pointing out that Dalio correctly predicted the 2008 financial crisis).<\/p>\n
Trump has triggered global economic chaos with his on-again, off-again tariffs (2). But Dalio fears something worse \u2014 the U.S. could end up isolated as its biggest trading partners sign cross-border agreements which exclude the world\u2019s largest economy (3).<\/p>\n
\u201cBut by and large, it\u2019s changing the world order in a way which is making it more inefficient and actually causing growth around the United States,\u201d Dalio said during the Paley Media Council event on May 22 (4).<\/p>\n
The end of the Second World War ushered in a new monetary and geopolitical world order. But history tends to repeat itself. Tariffs, combined with a high level of debt and a rising superpower challenging the existing superpower, could lead to \u201cprofound changes\u201d in the world order.<\/p>\n
\u201cSuch times are very much like the 1930s,\u201d he told NBC.<\/p>\n
\u201cThese go in cycles that can be measured, and I worry about the breakdown of that kind of order, particularly since it doesn\u2019t need to happen,\u201d he noted, adding that there are better ways to restructure debt.<\/p>\n
Whether tariffs are implemented in a \u201cstable\u201d way or a \u201cchaotic and disruptive way\u201d can make \u201call the difference in the world,\u201d he said. But so far, the tariffs have been akin to \u201cthrowing rocks into the production system.\u201d In other words, highly disruptive.<\/p>\n
Despite Dalio\u2019s warning, recent data suggest the U.S. economy continues to grow, increasing by an estimated 1.9% in 2025 (5), though there are still signs of concern.<\/p>\n
Employment growth in 2025 was somewhat weak for a non-recessionary year. Employers added roughly 584,000 jobs over the entire year, the slowest annual job creation outside of recession periods in over two decades (6).<\/p>\n
The unemployment rate edged down slightly to around 4.4%, even as sectors like manufacturing and retail saw job losses while health care and service industries accounted for most of the gains. Wage growth modestly outpaced inflation, but the overall labor market remains far from strong.<\/p>\n
Many experts say the labor market is going to soften even more in 2026, with unemployment potentially rising to 4.5% on average in 2026 (7). This is far from ideal, but it\u2019s not at the level of the Great Depression in the 1930s, as Dalio suggests, when nearly a quarter of America\u2019s labor force couldn\u2019t find employment.<\/p>\n
Read More: Approaching retirement with no savings? Don\u2019t panic, you’re not alone. Here are 6 easy ways you can catch up (and fast)<\/a><\/p>\n ## How can you prepare your finances?<\/p>\n If you\u2019re an average American, how can you heed Dalio\u2019s warning? Start by establishing an emergency fund (if you don\u2019t already have one) that will cover at least three to six months of expenses \u2014 perhaps more, if you\u2019re in a job that could be impacted by tariffs and trade wars.<\/p>\n An easy way to kickstart your emergency fund is by maximizing the cash you’re stashing away in a high-yield cash account like the one offered by Wealthfront, a financial services platform offering a range of products, from automated investing to cash accounts.<\/p>\n With a Wealthfront Cash account, you could earn up to 4.15% APY<\/a> on your uninvested cash for your first three months (0.50% APY boost on top of the 3.50% base variable APY as of November 7, 2025) provided by program banks. That\u2019s over nine times the national deposit savings rate, according to the FDIC\u2019s October report.<\/p>\n Plus, Wealthfront<\/a> charges no account fees. With full access to your money at all times, Wealthfront also offers fast (and free) transfers to eligible accounts 24\/7.<\/p>\n After you\u2019ve taken care of your emergency fund, you can prioritize saving for retirement and other long-term goals. If your budget is tight, you can still find a way to invest in your future through Acorns.<\/p>\n Acorns<\/a> is an automated investing and saving platform that simplifies the process of setting aside extra funds.<\/p>\n When you sign up and link your bank account<\/a>, Acorns automatically rounds up the price of each of your purchases to the nearest dollar. The difference goes into a smart investment portfolio, allowing you to grow your wealth without even thinking about it.<\/p>\n Plus, you can get a $20 bonus investment<\/a> when you sign up for Acorns with a recurring deposit.<\/p>\n It may also be a good time to diversify your investments across different asset classes to mitigate risk. That might mean adjusting your mix of stocks, bonds and other assets.<\/p>\n If you\u2019re close to retirement, you might want to shift to lower-risk assets, like dividend-paying stocks. Alternative investments, such as gold and real estate, are often considered a hedge against inflation and recession.<\/p>\n A gold IRA is one option for building up your retirement fund with an inflation-hedging asset.<\/p>\n Opening a gold IRA with the help of Goldco<\/a> allows you to invest in gold and other precious metals in physical form while also providing the significant tax advantages of an IRA.<\/p>\n With a minimum purchase of $10,000, Goldco offers free shipping and access to a library of retirement resources. Plus, the company will match up to 10% of qualified purchases in free silver<\/a>.<\/p>\n If you\u2019re curious whether this is the right investment to diversify your portfolio, you can download your free gold and silver information guide today<\/a>.<\/p>\n If you\u2019re an accredited investor, Homeshares allows you to gain direct exposure to hundreds of owner-occupied homes in top U.S. cities<\/a> through their U.S. Home Equity Fund \u2014 without the headaches of buying, owning, or managing property.<\/p>\n The fund focuses on homes with substantial equity, utilizing Home Equity Agreements (HEAs) to help homeowners access liquidity without incurring debt or additional interest payments.<\/p>\n This approach provides an effective, hands-off way to invest in high-quality residential properties<\/a>, plus the added benefit of diversification across various regional markets \u2014 with a minimum investment of $25,000.<\/p>\n With risk-adjusted target returns ranging from 12% to 18%, Homeshares<\/a> could unlock lucrative real estate opportunities, offering accredited investors a low-maintenance alternative to traditional property ownership.<\/p>\n If you\u2019re new to hedging \u2014 a risk management strategy that can help offset losses by purchasing investments in an opposite position to an existing investment \u2014 you may want to consult with a financial advisor to see how this could help mitigate risk in your portfolio.<\/p>\n Advisor.com<\/a> can help you find someone who\u2019s right for you.<\/p>\n Advisor.com<\/a> is an online platform that connects you with vetted financial advisors. Just answer a few quick questions about yourself and your finances, and the platform will match you with experienced financial professionals best suited to help you develop a plan to achieve your homeownership or retirement goals.<\/p>\n You can view the advisors\u2019 profiles, read past client reviews, and schedule an initial consultation<\/a> for free with no obligation to hire.<\/p>\n Depending on whether you\u2019re close to retirement or not, you may want to adjust your retirement strategy \u2014 and adjust your risk tolerance to match that strategy. If you\u2019re a young investor, you still have time for the market to recover, so avoid panic selling.<\/p>\n We rely only on vetted sources and credible third-party reporting. For details, see our editorial ethics and guidelines.<\/a><\/p>\n @NBCNews (1<\/a>); Moneywise (2<\/a>), (3<\/a>); Observer (4<\/a>); The Federal Reserve Bank of Philadelphia (5<\/a>); The Wall Street Journal (6<\/a>); Reuters (7<\/a>)<\/p>\n This article provides information only and should not be construed as advice. It is provided without warranty of any kind.<\/p>\n","protected":false},"excerpt":{"rendered":"Dia Dipasupil\/Getty Images Moneywise and Yahoo Finance LLC may earn commission or revenue through links in the content…\n","protected":false},"author":2,"featured_media":241224,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[11],"tags":[64276,17738,72,1890,969,113,1329,61,60,3916,5580,1099,122150],"class_list":{"0":"post-241223","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-economy","8":"tag-2008-financial-crisis","9":"tag-bridgewater-associates","10":"tag-business","11":"tag-dave-ramsey","12":"tag-donald-trump","13":"tag-economy","14":"tag-emergency-fund","15":"tag-ie","16":"tag-ireland","17":"tag-jeff-bezos","18":"tag-ray-dalio","19":"tag-recession","20":"tag-world-order"},"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/posts\/241223","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/comments?post=241223"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/posts\/241223\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/media\/241224"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/media?parent=241223"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/categories?post=241223"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/tags?post=241223"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}