Billionaire investor Ray Dalio warned that President Trump's aggressive policies could trigger a new phase of global financial conflict. Speaking at Davos, the Bridgewater Associates founder suggested foreign investors might reconsider buying U.S. debt, citing historical precedents where geopolitical tensions reduce appetite for holding an ally's Treasuries.

Dalio's concern centers on eroding trust between nations holding large U.S. dollar reserves and the U.S. itself. He drew parallels to past conflicts where economic disputes escalated into capital and currency battles. This dynamic could pressure Treasury prices, which fell Tuesday amid renewed tariff threats targeting European allies over Greenland.

The hedge fund manager recommended diversification as a hedge, advising investors allocate 5% to 15% of portfolios to assets that perform well when others falter. His warning underscores growing market anxiety as trade tensions resurface, potentially challenging the long-standing demand for U.S. sovereign debt as the world's safe-haven asset.