Bridgewater Associates founder Ray Dalio said Thursday he is concerned about the financials markets given increasing political risks in Asia and domestically.

“Prospective risks are now rising and do not appear appropriately priced in,” Dalio wrote in a LinkedIn blog post. “The emerging risks appear more political than economic, which makes them especially challenging to price in.”

As a result, the hedge fund manager recommended investors allocate 5 percent to 10 percent of their portfolios to gold.

“We can also say that if the above things go badly, it would seem that gold (more than other safe haven assets like the dollar, yen, and treasuries) would benefit,” he wrote.

Dalio cited the rising geopolitical tensions between US and North Korea in recent days.

“Two confrontational, nationalistic, and militaristic leaders 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,” Dalio wrote.

He also noted the potential of Congress not being able to increase the debt ceiling in a fight with President Donald Trump over his border wall and the risk of a government shutdown later this year.

“When it comes to assessing political matters (especially global geopolitics like the North Korea matter), we are very humble. We know that we don’t have a unique insight that we’d choose to bet on,” he wrote. “We aim to stay liquid, stay diversified, and not be overly exposed to any particular economic outcomes.”

Bridgewater is the world’s largest hedge fund, managing about $160 billion, according to its website. The firm did not immediately respond to a request for comment.

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