Ray Dalio, a renowned investor and founder of Bridgewater Associates, has issued a warning to investors, highlighting the growing macroeconomic risks in global markets.
Dalio's Investment Recommendations
Speaking on The Master Investor podcast, Dalio recommended that investors allocate at least 15% of their portfolios to gold and Bitcoin.
Analysis of the Macroeconomic Situation
Dalio noted that rising public debt, particularly in the US and other major economies, has not yet been fully priced into the markets. This situation could lead to a significant crash in bond and stock markets in the near future.
"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 stated.
The Role of Gold and Bitcoin in a Portfolio
Dalio pointed out that these debts can only be financed through new borrowing and the Fed's money printing. This could erode investor confidence, and developments such as a new wave of quantitative easing or the government tightening its grip on the Fed could lead to sharp market declines.
"Such signals are slowly starting to blink," he added. Dalio considers gold and Bitcoin to be "hedges" against these uncertainties, prioritizing gold over the other assets.
Amid rising macroeconomic risks, Ray Dalio recommends that investors pay attention to gold and Bitcoin as potential means of protecting investments, emphasizing the importance of recognizing current economic realities.
