DALIO: 'I'm worried about what the next downturn might look like'

Thomson ReutersRaymond Dalio, Founder, Chairman and Co-Chief Investment Officer of Bridgewater Associates, speaks at the Milken Institute Global Conference in Beverly HillsRay Dalio, the founder of the world's largest hedge fund firm Bridgewater Associates, says he's worried about what the economy will be like in two to three years.

"I'm worried about what the next downturn might look like," Dalio said.

He made the comments in an interview with Business Insider's global editor in chief Henry Blodget on The Bottom Line, Business Insider's new weekly business news show. You can watch the full interview here.

"All of these tensions will be exacerbated," Dalio added. "The wealth gap and the tensions between the groups will be exacerbated, the effectiveness of monetary policy in stimulating an economy is less than it used to be."

In addition, "the asset prices have benefited and are now high as a result fo the liquidity that has been put in," Dalio said."We're near the best we can be."

"There is nothing immediately that's scary, he added, but "to take a two or three year perspective, I'm concerned."

Westport, Conn.-based Bridgewater managed about $103 billion in hedge fund assets as of midyear 2016, according to the HFI Billion Dollar Club ranking, making it the world's biggest hedge fund. The firm manages about $150 billion total firmwide.

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