Latest news with #RayDalio
Business Insider
4 hours ago
- Business
- Business Insider
Here's how much crypto or gold investing legend Ray Dalio says you should have in your portfolio
Hedge fund icon Ray Dalio hasn't been feeling particularly upbeat about the prospects for America's fiscal situation. The founder of Bridgewater Associates, Dalio has lately been sounding the alarm on a brewing US debt crisis he believes is quickly approaching. On an episode of the Master Investor podcast over the weekend, he discussed the current economy with host Wilfred Frost, stating that he thinks investors should allocate roughly 15% of their portfolio for either bitcoin or gold due to the currency debasement he sees unfolding as the US dollar is debased by rapid borrowing and deficit spending. "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," he said. Dalio added that while he strongly prefers gold over bitcoin, he believes the real economic issue facing markets and investors is the devaluation of fiat money, a phenomenon which occurs in times of both economic excess and geopolitical tension, both of which apply to America's current situation. Citing previous historic examples, such as the market spasms of the 1970s, Dalio stressed the importance of holding an effective diversifier in your portfolio and holding 15% as a hedge against. However, he also made it clear that he doesn't think investors should "go overweight" in allocating more than 15% to these assets, stating that diversification was more important than trying to play the market. Other financial experts, such as Ric Edelman, have said that it may make sense for investors to have as much as 40% of their portfolios allocated for crypto. But for someone like Dalio, a more measured approach is on brand. "15% of a portfolio is a rather small share — after all, the remaining 85% can be invested however you like," said Arthur Azizov, founder of B2 Ventures. "[Dalio] is simply encouraging people to have a solid foundation, so that in the event of unexpected circumstances, they have a more likely chance of making a profit."
Daily Mail
10 hours ago
- Business
- Daily Mail
Investor who called 2008 crash delivers grim warning to the US
Billionaire hedge fund titan Ray Dalio (pictured), who famously predicted the 2008 financial crash, has sounded a stark alarm over America's spiraling debt. Dalio warned that without swift action to slash the federal deficit, the US could face an 'economic heart attack' in the next three years. 'If the US doesn't cut the deficit to 3 percent of the GDP, and soon, we risk facing an economic heart attack in the next three years,' Dalio wrote on X. 'The good news is that these cuts are possible.' The national debt is nearing $37 trillion — equal to 99 percent of GDP — and the Congressional Budget Office projects it could hit 150 percent by 2055. Dalio, founder of Bridgewater Associates — the world's biggest hedge fund — said a 4 percent adjustment to spending and tax revenues could stabilize the economy and even lower interest rates. 'We know this kind of balance is possible because it happened between 1991 and 1998,' he wrote, pointing to previous bipartisan deficit deals. 'My fear is that we will probably not make these needed cuts due to political reasons, and will have even more debt and debt service encroaching on our spending that will ultimately lead to a serious supply-demand problem.' Dalio has repeatedly warned that economic decisions made by the White House will end in economic catastrophe. In April the billionaire spoke against Trump's decision to launch a global trade war via tariffs on America's trading partners. 'Some people believe that the tariff disruptions will settle down as more negotiations happen and greater thought is given to how to structure them to work in a sensible way,' Dalio wrote in a post on social media site X. 'I am now hearing from a large and growing number of people who are having to deal with these issues that it is already too late.' JPMorgan's CEO Jamie Dimon (pictured) warned last month that the US economy was on shifting 'tectonic plates' and warned that inflation could once again rear its ugly head. 'You have all these really complex, moving tectonic plates around trade, economics, geopolitics, and future factors, which I think are inflationary: military, restructuring of trade, ongoing fiscal deficits,; he told the Morgan Stanley US Financials Conference. The co-founder of Home Depot Ken Lagone also raised concerns about US debt, and said it is a 'scary' indicator for the state of the economy. The billionaire said he hoped Washington would heed his warning that 'we have to be mindful of the importance of our status in the world economy and the world markets. 'If we fritter that away, we're in trouble,' the 89-year-old said. 'Four weeks ago, we couldn't float a 20-year bond. They were unbiased. That's a dangerous signal. That's the beginning,' Langone said referencing recent crises in the bond market.
The Standard
13 hours ago
- Business
- The Standard
Bridgewater's Ray Dalio urges gold, bitcoin hedge amid US debt fears
Ray Dalio, the founder of Bridgewater Associates, addresses the panel session at the Business and Philanthropy Forum, during the United Nations Climate Change COP28 conference in Dubai, United Arab Emirates, December 2, 2023. REUTERS
Gulf Insider
16 hours ago
- Business
- Gulf Insider
Ray Dalio Urges 15% Portfolio Allocation to Gold and Bitcoin
Veteran asset manager Ray Dalio has advised investors to allocate at least 15% of their portfolios to gold and Bitcoin, amid increasing risks in bond and equity markets. Speaking on The Master Investor Podcast, the Bridgewater Associates founder argued that macroeconomic risks concerning rising government debts—in the U.S. and elsewhere—have not been priced into markets, which may eventually face a significant fall. The U.S. Government is 'is spending 40% more than it takes in, and it can't really cut its spending,' Dalio said, adding that, 'it's accumulated a debt that's six times the amount of money it takes in […] and in interest payments that is $1 trillion per year, which is half [its] budget deficit.' Dalio also went on to explain that the U.S. Government can pay its debts only by issuing more debt, and by 'the central bank [the Federal Reserve] printing the money.' This has created a situation where markets may become increasingly spooked, with Dalio suggesting that a trigger for a big crash could be another significant round of quantitative easing, or the Government taking control of the Federal Reserve. Signals of such events are beginning to 'flash or flicker,' according to Dalio, who also makes similar arguments in his recently published book, 'How Countries Go Broke.' Because such risks are not priced into markets, Dalio is advising investors to allocate at least 15% of their portfolios to gold or Bitcoin, which could serve as hedges against fiat currencies and cash equivalents (such as bonds). The investor suggested that he is 'strongly preferring' gold over Bitcoin, adding that he doubts any central bank would take the cryptocurrency on as a reserve currency, 'because everybody can understand and watch who is doing what transactions on it, so there's no privacy to it.' Dalio also argued that there are 'doubts' over whether 'the code can be broken' or whether Bitcoin's protocol could ever be changed to make it 'less effective' as a store of value. Given these concerns, the veteran asset manager explained that gold outweighs Bitcoin in his portfolio, saying, 'I have gold and I have some Bitcoin, but not much.' Such caution regarding Bitcoin is a common sentiment among more conventional investors and investment advisors, with AJ Bell's Head of Investment Analysis, Laith Khalaf, telling Decrypt that investing in BTC in the face of economic fears is akin to 'jumping out of the frying pan and into a red hot fiery pit.' While Khalaf affirmed that investing in Bitcoin is 'fine' if investors are allocating only small portions of money they're prepared to lose, he also argued that gold—which can also be volatile—is a 'more solid anchor' in the face of potential risk. 'Gold is a much preferable diversifier to Bitcoin, as it tends to increase in price when risk aversion is high,' he said. 'It can be a useful insurance policy for a portfolio, but importantly held alongside shares and bonds to achieve a balance of risk and reward.' On other hand, some experts highlight that gold can carry more risk than often advertised, with cryptocurrency analyst and author Glen Goodman telling Decrypt that certain periods of history were difficult for the metal. 'There's no denying Bitcoin's price volatility, but let's not forget anybody who bought gold during the inflation crisis of 1980 and held it for twenty years lost 85% of their money in real terms during that period,' he says. 'Gold didn't start recovering until the turn of the millennium.' Also read: The Dead Don't Spend Bitcoin: How to Set Up a Crypto Inheritance Plan (Before It's Too Late)
Yahoo
20 hours ago
- Business
- Yahoo
August: Time to Unplug from Markets?
US Inks Tariff Deals with EU, Japan: Sell the News? If history is any teacher, markets are the master manipulator and Wall Street is 'bent on fooling the masses.' 2025 is a perfect example of how market psychology works. Following President Donald Trump's 'Liberation Day' blanket reciprocal tariffs on April 1st, US stocks plunged into a bear market. As trade negotiations looked bleak, investors and some of Wall Street's top minds began to predict the worst. For instance, Ray Dalio, manager of Bridgewater Associates (the world's largest hedge fund) predicted a recession. CNBC's Jim Cramer boldly predicted another 'Black Monday' (when the S&P 500 Index crashed 20% in a single session). As is usually the case, the market sniffed out the future better than the crowd. Just as fear hit a fever pitch, US stocks began rallying and climbing the proverbial 'Wall of Worry.' Fast forward to today, the major US equity indexes are each at new highs, and the US has inked trade deals with its biggest trading partners, including China, Japan, and the European Union. Image Source: TradingView It's tough to argue with the Trump administration's trade wins. For example, Trump critic and left-leaning political commentator and comedian Bill Maher has admitted he was wrong about Trump's tariff policy. Nevertheless, savvy investors understand that August may be a time when the 'sell the news' phenomenon takes hold. Often, when a highly anticipated event or news announcement occurs, investors take profits, realizing that the news' impact has already been factored into stock prices. With the major indices essentially flat after the EU deal, a sell-the-news event may be underway. August Post-Election Seasonality is Poor Jeffrey Hirsch, author of 'The Stock Trader's Almanac,' does the best work on seasonal patterns on Wall Street. According Hirsch, Image Source: ( In addition to troubling seasonality patterns, many of Wall Street's top institutional investors take off on vacation, leading to illiquid and tricky markets during 'the summer doldrums.' 'The Warren Buffett Indicator' Flashes a Warning Sign 'The Warren Buffett Indicator' looks at the stock market's valuation versus gross domestic product (GDP). The indicator is calculated by comparing the Wilshire 5000 Total Market Index to GDP. At a current ratio of 212% publicly traded stock valuations to GDP, the indicator is flashing its most 'expensive levels in history.' Image Source: Zacks Investment Research Though such a reading should raise a yellow flag, there are two critical caveats investors must understand: 1. Valuations are a Poor Timing Device: While valuations can warn investors of a frothy market environment, they are a poor timing device. For instance, Buffett himself did not take advantage of historic gains during the Internet bubble due to his valuation metrics. Although stocks ultimately declined, the gains on the way up were monumental. 2. Denominator Can Increase: A bloated valuation does not necessarily mean that a market top is imminent. For example, suppose stocks correct or move sideways and the denominator (GDP) increases significantly (which is a distinct possibility with the current AI boom). In that case, the lopsided valuation can return to equilibrium. Earnings Reports will Dictate the Short-term Market Action Despite the short-term caution signals, earnings will likely dictate the short-term market action as Wall Street investors brace for the busiest part of earnings season. Big tech earnings from Meta Platforms (META), Microsoft (MSFT), Apple (AAPL), Arm Holdings (ARM), and Amazon (AMZN) are looming. Investors will focus on these tech juggernauts and will listen closely to gauge whether AI growth and CAPEX spending can continue to drive the market higher. Bottom Line While stocks continue to print fresh all-time highs, the 'sell the news' phenomenon, August post-election seasonality, and 'The Warren Buffett Indicator,' suggest that August may be a good time for active investors to take the foot off the gas pedal. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report ARM Holdings PLC Sponsored ADR (ARM) : Free Stock Analysis Report Meta Platforms, Inc. (META) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Sign in to access your portfolio
