Founder of Bridgewater Associates, Ray Dalio has made recommendations for investors to allocate part of their portfolios into less risky assets.
Dalio's Investment Recommendations
Dalio suggested that investors should allocate 15% of their assets to protective instruments such as Bitcoin and gold. He believes this would help shield against current economic risks associated with U.S. debt. However, he emphasized that the decision on asset allocation ultimately rests with the investors.
U.S. Macroeconomic Risks
Dalio pointed out that the debt situation in the U.S. is becoming increasingly critical. He expressed concerns over an economic crisis if the budget deficit is not reduced to 3% of GDP. According to his forecasts, the federal government may need an additional $12 trillion to service its growing debt.
Debt Issues in the UK
In his discussion, Dalio highlighted similar problems in the UK, where debt exceeds 101% of GDP. He urged the government to reduce the deficit and focus on cutting expenditures.
Ray Dalio highlighted the importance of diversifying portfolios in the face of rising debt risks in both the U.S. and other countries. His advice could significantly influence the investment strategies of many.
