Ray Dalio, founder of Bridgewater Associates and billionaire investor, has issued a crucial warning to investors, highlighting the growing macroeconomic risks in global markets. Speaking on The Master Investor podcast, Dalio claimed that investors should allocate at least 15% of their portfolios to gold and Bitcoin.
According to Dalio, rising public debt, particularly in the US and other major economies, has not yet been fully priced into the markets. He stated that this situation could lead to a major crash in bond and stock markets in the coming period.
Dalio stated that the US government is spending 40% more than its revenue and that this deficit is unsustainable, saying, “The government has accumulated debt six times its revenue, and annual interest payments are reaching $1 trillion. This equates to half of the budget deficit.”
Dalio pointed out that these debts can only be financed through new borrowing and the Fed's money printing. He argued that this could erode investor confidence and that developments such as a new wave of quantitative easing or the government tightening its grip on the Fed could cause sharp market declines.
Dalio stated that such signals are “slowly starting to blink.”
Dalio stated that gold and Bitcoin could be considered “hedges” against these uncertainties. However, he made it clear that he prioritizes gold over the other two assets. He argued that BTC lacks privacy and is unlikely to be adopted as a reserve currency by central banks.
“There are doubts about whether Bitcoin’s protocol can be changed or its code can be cracked,” Dalio said, adding that he holds “some Bitcoin” in his portfolio, but it is below the actual weight.
*This is not investment advice.
