Ray Dalio warns the economic world order is collapsing, and America may be headed into a ‘civil war.’ How to prepare

Then came his more unsettling assessment: The U.S. itself isn’t immune.

“We have a civil war of some sort, which is developing in the United States and elsewhere, where there are irreconcilable differences,” Dalio said.

Here’s how things break down on the home front.

Mounting Division

Certainly, political opinion in America is sharply divided. The American Survey Center reported as of 2025 that 71% of Republicans were at least somewhat satisfied with the current state of affairs in the country, and only 12% of Democrats said the same. In 2024, 17% of Republicans and 51% of Democrats were satisfied. And yet, 61% of Americans across the political spectrum report dissatisfaction with the current administration and state of the nation (6).

With this in mind, Dalio’s bleak outlook may be more realistic.

It’s a stark warning — especially from someone who also cautioned earlier in the interview that “our power to hurt each other has never been greater.”

He outlined two paths the country could take.

The first, more hopeful scenario is one in which Americans “rise above it and realize that our common good is going to necessitate us dealing with it so that what works for most people is going to work.” But as he admitted, that may be “a little bit idealistic.”

The second is far bleaker: “I think that these conflicts will become tests of power by each side.”

If his warning has you on edge and wondering how to protect your wealth in turbulent times, it may be worth considering assets that can help weather a crisis.

Read More: Approaching retirement with no savings? Don’t panic, you're not alone. Here are 6 easy ways you can catch up (and fast)

Dalio’s go-to asset for ‘bad times’

Amid his dire forecasts, Dalio has repeatedly emphasized the importance of diversification — and singled out one time-tested asset as a cornerstone of a resilient portfolio: gold.

“People don't have, typically, an adequate amount of gold in their portfolio,” he told CNBC earlier this year (7). “When bad times come, gold is a very effective diversifier.”

He doubled down on that view more recently at the Greenwich Economic Forum (8), calling gold a “very excellent diversifier in the portfolio.”

“If you look at it just from a strategic asset allocation perspective, you would probably have something like 15% of your portfolio in gold … because it is the one asset that does very well when the typical parts of the portfolio go down,” Dalio explained.

Test your mettle with gold

Long viewed as the ultimate safe haven, gold isn’t tied to any single country, currency or economy. It can’t be printed out of thin air like fiat money, and in times of economic turmoil or geopolitical conflicts like war, investors tend to pile in — driving up its value.

Gold is also on a historic bull run, climbing over 90% year-over-year and blowing past analyst expectations to an all-time high of over $5,000 per ounce as of late January (9).

If you want to test your mettle with gold, one way to invest that can also provide significant tax advantages is to open a gold IRA with the help of Thor Metals.

Gold IRAs allow investors to hold physical gold or gold-related assets within a retirement account, which combines the tax advantages of an IRA with the protective benefits of investing in gold. As a result, this can make it an attractive option for those looking to potentially hedge their retirement funds against economic uncertainties.

To learn more, you can get a free information guide that includes details on how to get up to $20,000 in free metals on qualifying purchases.

Warren Buffett’s advice on what to own in a war

Investing legend Warren Buffett has also offered clear money advice for politically volatile times.

In 2014 — the last time Russia invaded Ukraine — Buffett told CNBC that “the last thing you'd want to do is hold money during a war,” because in “virtually” every conflict he’s aware of, the value of money would go down (10). This is partly due to the effect that war tends to have on inflation as resources are redirected to the military.

So what does he recommend owning when the world is on edge?

“You might want to own a farm, you might want to own an apartment house, you might want to own securities,” Buffett said.

Indeed, real assets like apartment buildings have the potential to create returns through thick and thin. In fact, Buffett has repeatedly pointed to real estate as a prime example of a productive, income-generating asset.

In 2022, Buffett stated that if you offered him “1% of all the apartment houses in the country” for $25 billion, he would “write you a check (11).”

Real estate also offers a natural hedge against inflation — a point that aligns with Buffett’s warning about the erosion of money’s value during wartime. When inflation rises, property values often increase as well, reflecting the higher costs of materials, labor and land. At the same time, rental income tends to go up, providing landlords with a revenue stream that adjusts with inflation.

Become a real estate mogul with just $100

Of course, you don’t need billions — or even to buy an entire property — to invest in real estate. Crowdfunding platforms like Arrived offer an easier way to get exposure to this income-generating asset class.

Backed by world-class investors like Jeff Bezos, Arrived allows you to invest in shares of rental homes with as little as $100, all without the hassle of mowing lawns, fixing leaky faucets or handling difficult tenants.

The process is simple: Browse a curated selection of properties pre-vetted for their potential for long-term appreciation in value and income-generating power. Once you find a property you like, it’s as simple as selecting the number of shares you’d like to purchase and then sit back as you start receiving any positive rental income distributions from your investment.

Invest in single-family homes and residential units with $10

There are also ways to take advantage of real estate without locking yourself into a silo — whether industrial or vacation rental. And this accessibility doesn’t necessarily mean sacrificing scale or professional management.

Private real estate funds can give investors access to large, professionally managed property portfolios that would typically be difficult to acquire individually, while offering diversification across properties and regional markets.

For instance, the Fundrise Flagship Fund is a $1.2 billion private real estate fund that lets you invest in an expertly crafted strategy without needing hundreds of thousands of dollars. With 4,700+ single-family homes and 2,500+ residential units, you can get direct exposure to institutional-style scale and diversification.

Even better, you don’t need to be an accredited investor to get started. All it takes is a $10 initial investment to begin exploring real estate today.

After you place your first investment, the Fundrise Flagship Fund will work to find and add new assets to your portfolio over time and send you transparent updates along the way. That way, you can scale up as much, or as little, as you’re comfortable with.

A finer alternative

There is another asset class that’s coveted by billionaires like Ray Dalio, Mark Cuban and others for its appreciation potential, resale value and the fact that it isn’t correlated with returns on the stock exchange or tied to the U.S.’s economic output. It’s also a globally recognized asset and looks good hanging on the wall of a gallery.

The asset in question? Art.

In 2022 — shortly after U.S. inflation hit a 40-year high — a collection of art owned by the late Microsoft co-founder Paul Allen sold for $1.5 billion at Christie’s New York, making it the most valuable collection in auction history (12).

Investing in art was traditionally a privilege reserved for the ultra-wealthy, but now it’s available to all investors thanks to Masterworks — a platform for investing in shares of blue-chip artwork by renowned artists, including Pablo Picasso, Jean-Michel Basquiat and Banksy.

From their 23 exits so far, Masterworks investors have realized representative annualized net returns like +17.6%, +17.8% and +21.5% among assets held for longer than one year. Simply browse their portfolio of paintings and choose how many shares you’d like to buy. Masterworks will handle all the details, making high-end art investments both accessible and effortless.

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