In light of the United States’ precarious fiscal situation, Ray Dalio, the founder of Bridgewater Associates, has advised investors to consider dedicating approximately 15% of their portfolio to either gold or Bitcoin.

What Happened: In a recent interview, Dalio expressed his apprehension about a looming US debt crisis. He pointed out that the US dollar is being undermined due to excessive borrowing and deficit spending, leading to currency debasement.

“If you were neutral on everything and optimizing your portfolio for the best return-to-risk ratio, you would have about 15% of your money in gold or Bitcoin,” Dalio stated.

Dalio also emphasized the need for effective diversification in a portfolio, recommending allocating about 15% as a protective hedge.

During the discussion, he clarified that although he has a preference for gold over Bitcoin, the real economic issue is the devaluation of fiat money, which is currently affecting markets and investors.

Also Read: Ray Dalio Shares Crucial Investment Advice for Those Who Want to Invest Well

While some financial experts advocate for a higher allocation towards crypto, Dalio’s balanced approach aligns with his brand. 

Dalio’s recommendation comes at a time when the US is grappling with a burgeoning debt crisis. The rapid borrowing and deficit spending by the government are causing a devaluation of the US dollar, which is impacting markets and investors.

By suggesting a 15% portfolio allocation to gold or bitcoin, Dalio is offering a potential solution for investors to safeguard their investments against the devaluation of fiat money.

While some experts suggest a higher allocation to crypto, Dalio’s measured approach provides a balanced perspective.

It offers investors a solid foundation to profit in unexpected circumstances, thereby mitigating the risks associated with the current economic situation.

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