Though Ray Dalio, co-chief investment officer of Bridgewater Associates, sees similarities to the 1930s on several fronts, the founder of the biggest hedge fund does not see a market or economic crash, so much as a “great sag” ahead.

Dalio, at a panel at the International Monetary Fund’s annual meetings in Washington, D.C., said the wealth gap is as bad as in the 1930s, with the top one-tenth of the top 1% having roughly the same net worth as the bottom of the 90%. Markets and the global economy are also contending with greater “political polarity” and monetary policy has less room to maneuver in a downturn after years of anemic interest rates. And like the 1930s, a rising power — China — is challenging an incumbent power — the US. “This is the best we get. The cycle is not going to continue forever,” Dalio said.