Bridgewater Associates is bearish on nearly every financial asset, it said in a recent note to clients.

"2019 is setting up to be a dangerous period for the economy," the giant hedge fund said.

The firm said earlier this month that a major driver of the stock market is nearing its end.

Bridgewater Associates, the world's largest hedge fund, is sounding the alarm on nearly every financial asset.

"We are bearish on almost all financial assets," the firm said in a note to clients last week that was seen by Business Insider and first reported by ZeroHedge. "Markets are still pricing in Goldilocks conditions, compounding the risks."

Extrapolating from current conditions, the hedge fund — which currently manages about $150 billion, according to its website — says the yield curve for Treasury bonds should remain flat, with oil hitting $62 and the dollar slumping 3.5% compared to other major currencies.

"2019 is setting up to be a dangerous period for the economy, as the fiscal stimulus rolls off while the impact of the Fed's tightening will be peaking," the firm continued. "And since asset markets lead the economy, for investors the danger is already here."

Earlier this month, Bridgewater said a crucial market driver is at 10 o'clock. Once the "dial" — represented visually in Bridgewater's note by an arrow within a feedback loop — reaches 12, liquidity will tighten in earnest. And that's when the going will get really tough.