Key facts
- Ray Dalio recommends Bitcoin and gold as hedges against a U.S. debt crisis.
- Dalio suggests allocating 10-15% of a portfolio to gold for risk reduction.
- He advocates for overweighting gold and Bitcoin over debt assets like bonds.
- Dalio estimates a U.S. debt crisis could occur within three years.
- The U.S. national debt has surpassed $40 trillion.
Bridgewater Associates founder Ray Dalio has advised investors to overweight Bitcoin and gold as hedges against a looming U.S. debt crisis. Dalio suggests allocating 10-15% of a portfolio to gold and favors non-government-produced assets like gold and Bitcoin over debt instruments such as bonds.
Dalio predicts that a U.S. debt crisis could occur within the next three years, citing similar debt and deficit problems in major economies like the U.K., U.S., Europe, and Japan. He noted that assets not issued by governments could benefit from these conditions.