Hedge-fund billionaire Ray Dalio fears the GameStop frenzy was really about wealth inequality

Hedge-fund billionaire Ray Dalio fears the GameStop frenzy was really about wealth inequality

Ray Dalio Reuters / Ruben Sprich

Billionaire investor Ray Dalio isn't worried about the Reddit users who collectively drove GameStop's stock price to stratospheric levels last week, or the short-selling hedge funds that were squeezed as a result.

His real fear is that the GameStop saga was a symptom of broader inequality and division in America, he said on the Axios Re:Cap podcast this week. He pointed out gaps in wealth, values, and political views in the US are at their widest in more than 120 years.

"That's the big thing," he said, whereas short squeezes are "just part of the game."

Read More: Investors are flocking to trade Dogecoin and other hot digital tokens on Voyager, a platform with no Robinhood-style restrictions. Its CEO says Bitcoin will hit $100,000 this year - and shares 3 other cryptocurrencies to watch.

"The system doesn't work for most people, and so it needs to be reengineered, otherwise we're gonna have a civil war," he added.

The founder and co-chief of Bridgewater Associates - the world's largest hedge fund with over $150 billion in assets - celebrated upstarts disrupting the establishment as key to America's growth and prosperity.

"I can relate to these guys," he said. "I would have been there