Ray Galio, the head of the world's largest hedge fund says U.S. in a 'Pre-Bubble Phase' with a 70% Chance of Recession.
"I think we are in a pre-bubble stage that could go into a bubble stage," the hedge-fund manager said during a Harvard Kennedy School's Institute of Politics on Wednesday.
Dalio's recession comments echo remarks he has made over in a LinkedIn post, where he wrote that "the risks of a recession in the next 18-24 months are rising."
"Stupid to Hold Cash"
Despite his recession call, Dalio is the same person who told the crowd at Davos, 'If You're Holding Cash, You're Going to Feel Pretty Stupid'.
Dalio is also a believer in the sideline cash theory and that we may see a "Minor Correction".
In a LinkedIn article following the VIX-related plunge, Dalio said We've Just Had a Taste of What the Tightening Will Be Like.