Billionaire Ray Dalio, chairman and chief investment officer at investment firm Bridgewater Associates, said on Monday that given the current economic and political backdrop, he's reducing his risk.

Bridgewater manages about $150 billion in global investments, and Dalio believes that "we are now economically and socially divided and burdened in ways that are broadly analogous to 1937."

"I can't say how bad this time around will get. I'm watching how conflict is being handled as a guide, and I'm not encouraged."

And while the U.S. economy seems to be doing "just fine," Dalio contends that "gaps in wealth and incomes" are the greatest since the 1930s.

"In other words, the majority of Americans appear to be strongly and intransigently in disagreement about our leadership and the direction of our country."

While Dalio believes there is "no important" looming economic risks, he is "concerned" about the escalating internal and external struggles driving "government efficiency" related to policies and legislation.

Dalio hopes the country can unite to foster productive, intelligent and accepting discussions to reach a common ground and move forward together.

"I believe that how well this is done will have a greater effect on the economy, markets and our overall well-being than classic monetary and fiscal policies, so I continue to closely watch how conflict is handled while tactically reducing our risk to it not being handled well."

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