Bridgewater Fund Founder Recommends Allocating 15% of Portfolio to Bitcoin and Gold

Key Points

1. The recommended allocation is split evenly between gold (7.5%) and Bitcoin (7.5%) for diversification and risk management.

2. Gold is recognized as a stable store of value, providing steady protection, while Bitcoin offers high growth potential and low correlation with stocks.

3. Historical data shows gold acts as a hedge during inflation, and Bitcoin's limited supply serves as a digital hedge.

4. This strategy helps reduce portfolio risk by including uncorrelated assets, benefiting investors during market stress and inflation.

5. The allocation aligns with modern portfolio theory, optimizing long-term wealth preservation and capital growth.