Legendary investor Ray Dalio has significantly increased his recommended portfolio allocation for Bitcoin and gold, raising it to 15%. This represents a substantial jump from his previous suggested level of 2%.
Dalio attributes this heightened recommendation to growing concerns about potential economic instability. He specifically warns of a looming ‘economic heart attack’ exacerbated by excessive government debt and fiscal deficits within the US economy.
Concurrently, Dalio’s departure from Bridgewater Associates, the hedge fund powerhouse he led for half a century, is now complete. The transition involves new investors, including Brunei’s sovereign wealth fund, acquiring a near 20% stake in the firm.
While Dalio possesses a storied track record with successful predictions like foreseeing the 2008 financial crisis, his economic forecasts have also included inaccuracies, such as a predicted global depression in 1982 that did not materialize. His current stance positions both Bitcoin and gold as essential hedges against the risks of currency devaluation and potential market stress.