In the wake of the World Economic Forum in Davos, Switzerland, billionaire investor and founder of Bridgewater Associates, Ray Dalio, sounded a global "alarm" for the economy—and as it seems, his warnings are beginning to be confirmed. His core assessment is clear: the old global economic order has now collapsed and is unlikely to return in the near future. In an interview with Fortune on the sidelines of the WEF, Ray Dalio was categorical: "Let’s not be naive and say we’re just violating the system of rules. It’s over. It’s going away." As he explained, he was referring to the long-standing balance of power between nations, which relied on a relatively predictable US foreign policy.
Since March 18, however, the international community's attention has shifted to Iran. The war has caused significant turbulence in the energy market, with the price of gasoline increasing by about 80 cents per gallon due to limited supply linked to the near-total blockade of the Strait of Hormuz. At the same time, according to CNN, the US president threatened to drive Iran "back to the stone age."
A new era
These developments may signal a new, prolonged conflict in the Middle East, forming part of a wider chain of geopolitical tensions. Indicatively, in April 2025, the S&P 500 index recorded one of the largest drops in its history under the weight of American "retaliatory" tariffs, followed by tensions over Greenland, disagreements within NATO, and new upheavals in the war in Ukraine. Today, with the average gasoline price exceeding 4 dollars per gallon, both American citizens and Wall Street investors are worried about the impact of a new energy crisis.
Wars on multiple fronts
Ray Dalio warns that wars absorb resources and erode market confidence. Investing in the debt of countries at war, as he notes, is an extremely risky choice. In another interview on the show Leaders with Francine Lacqua in late 2025, he was asked directly if the world is close to a new world war.
His answer was immediate: "We are already in wars. There is an economic war, a technology war, geopolitical wars, and more military wars." He expressed particular concern regarding the US, speaking of a "form of civil war" developing due to deep and irreconcilable differences.
Deep political divisions
American society appears intensely polarized. According to data from the American Survey Center, in 2025, 71% of Republicans reported being satisfied with the state of the country, compared to just 12% of Democrats. Overall, 61% of Americans express dissatisfaction with the country's direction. In this environment, Ray Dalio's warnings carry significant weight. As he pointedly noted, "our ability to hurt each other has never been greater." He outlines two possible scenarios: either citizens will overcome their differences for the common good—something he admits may be idealistic—or the conflicts will evolve into open power confrontations.
Gold: The "refuge" in crises
In this uncertain environment, Ray Dalio emphasizes the importance of investment diversification, placing special emphasis on gold. "Most people do not have enough exposure to gold," he told CNBC. "In difficult times, gold is a very effective diversification tool." Gold has long been considered a safe haven, as it is not linked to any specific economy or currency. In 2025, it recorded an impressive rise, even surpassing 5,000 dollars per ounce.
Warren Buffett’s advice
Similar warnings have been voiced by legendary investor Warren Buffett. In a previous statement to CNBC, he emphasized that "the last thing you'd want to do is hold cash during a war," as its value tends to decrease. Instead, he suggests investing in real assets, such as farmland, real estate, or stocks, which can yield returns even in times of crisis. Real estate in particular, as he points out, acts as a natural inflation hedge, as both property values and rents tend to increase.
Alternative investments and art
Beyond traditional assets, there is growing interest in alternative forms of investment, such as art. Works by artists like Banksy, Jean-Michel Basquiat, and Pablo Picasso attract investors, as they are not directly linked to stock markets and often maintain high value during periods of crisis. The general picture described by Ray Dalio is grim but realistic: a world changing radically, with increasing conflicts and economic instability—and with the need for careful, strategic investment choices becoming more imperative than ever.
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