Ray Dalio warns about the tensions in North Korea

Hedge fund managers have been adjusting their portfolios. Bridgewater's Ray Dalio, manager of the world's largest hedge fund with $160 billion in assets, specifically cited the potential conflict between U.S. and North Korea leaders for his recommendation to buy safe haven assets.

"Prospective risks are now rising and do not appear appropriately priced in," Dalio wrote in a LinkedIn blog post on Aug. 10.

"Two confrontational, nationalistic, and militaristic leaders [are] playing chicken with each other, while the world is watching to see which one will be caught bluffing, or if there will be a hellacious war," he wrote.

Tensions escalated again when North Korea launched a missile over Japan on Tuesday local time, driving U.S. stock index futures lower. In response, President Donald Trump later said in a statement, "All options are on the table" for North Korea.

Earlier in August, he warned that any additional threats from North Korea "will be met with fire, fury and frankly power the likes of which this world has never seen before."

Source: Bloomberg Pro Terminal

Junior Trader Stefan Panteleev

Read more:

• USA ADP Nonfarm Employment Change: 202K vs 160K
• Iran response was ‘too fast and too furious’ on the U.S. airstrike
• USA – ISM Non-manufacturing PMI: 55.0 vs 54.5
• Top 5 things to watch on Tuesday
• Noise: How to Overcome the High, Hidden Cost of Inconsistent Decision Making