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Concerns Rise Over Potential 2024 Election Impact on MarketsConcerns Rise Over Potential 2024 Election Impact on Markets

Bridgewater Associates founder Ray Dalio believes a rematch of the 2020 election will be problematic for markets, regardless of the outcome.

What Does Dalio Say? In an interview at the World Economic Forum Tuesday on CNBC’s “Squawk Box,” financial journalist Andrew Ross Sorkin asked Dalio how a 2024 presidential election win for President Joe Biden or former President Donald Trump would impact the markets.

“I think they’re both threatening for the markets,” Dalio said.

If Biden were to win the presidency again this year, many are concerned he would not be able to complete the full four-year term given his age, the billionaire investor said.

If he were unable to complete a full second term, power would shift to Vice President Kamala Harris, who is more progressive than Biden, he said.

Trump is the clear favorite to win the Republican primary and he represents the far right. Given the vast differences between the two candidates, Dalio said his “biggest worry” is whether both parties will accept the result of the election. He suggested that the two sides could threaten the authority of the nation.

Trump on Monday won the Iowa caucus in a landslide with approximately 51% of the vote, setting a new record for victory margins in the Iowa Republican caucus. The former President also holds a commanding lead in the Republican primary race with approximately 69% of support, according to the latest Morning Consult poll, which Benzinga tracks weekly.

Portfolio Positioning: Dalio told CNBC that the markets are “not either super attractive or super unattractive” right now, so investors should be building a “neutral” portfolio ahead of the election.

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He noted that he has a neutral portfolio with diversified positions for times like these and suggested that investors should be prepared similarly.

“People always think you go closer to cash. That’s not right because cash is a trashy investment over a long period of time, but what is balance? How do you balance that portfolio? You go to neutral. You should know what your neutral portfolio is and go closer to that,” Dalio said.

The SPDR S&P 500 SPY was down 0.49% at the time of publication, according to Benzinga Pro.

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Photo: World Economic Forum from Flickr.