Ray Dalio fears 'capital wars' could follow Trump's actions with countries dumping U.S. assets

Ray Dalio warns that actions taken by former President Trump could lead to 'capital wars' as nations start to divest from U.S. assets. He points out that history shows instances where economic conflicts escalate beyond trade into capital flows and currency disputes. Concerns about declining foreign investments and strong backlash against policy changes contribute to this situation. Dalio emphasizes the significance of such economic trends on market dynamics, urging investors to remain vigilant and manage risks effectively as reactive movements in certain asset classes may arise.