The founder of Bridgewater Fund has proposed allocating at least 15% of investment portfolios to gold and Bitcoin.
This allocation would be equally divided, with 7.5% directed towards gold and 7.5% towards Bitcoin. The strategy emphasizes diversification and risk management.
Gold is characterized as a stable store of value offering consistent protection, while Bitcoin presents significant growth potential and demonstrates low correlation with traditional stock markets.
Historically, gold has served as an inflation hedge, and Bitcoin’s limited supply establishes it as a digital hedge.
Inclusion of these uncorrelated assets reduces overall portfolio risk. This approach aims to protect wealth during periods of market volatility and inflation.
The allocation aligns with principles of modern portfolio theory, optimizing for long-term capital preservation and growth.