Dalio Recommends 15% Portfolio Allocation to Gold or Bitcoin
Ray Dalio, founder of Bridgewater Associates, discussed portfolio diversification in a recent podcast. He stated that:
- Investors should allocate about 15% of their portfolio to gold or Bitcoin for optimal return-to-risk ratio.
- Dalio prefers gold over Bitcoin but recognizes the value in both assets.
- He personally holds Bitcoin but points out potential central bank resistance due to privacy and regulatory issues.
- The decision to invest in gold or Bitcoin is subjective and depends on individual strategies for hedging against inflation and currency fluctuations.
- Dalio highlighted the need for the U.S. to issue approximately $12 trillion in new debt in the coming year, strengthening the case for alternative stores of value.