Latest news with #BridgewaterAssociates
Business Insider
5 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."
South China Morning Post
8 hours ago
- Business
- South China Morning Post
Why did Chinese economist slam Ray Dalio on debt situations in US, China?
A prominent Chinese economist has pushed back against Bridgewater Associates founder Ray Dalio's views on the debt situations in China and the United States, as debate over the fiscal directions of the world's two largest economies heats up. Xu Gao, chief economist at Bank of China International (China), said in a recent 9,000-word article that Dalio was mistaken in calling for China to deleverage, arguing that such a view 'misjudges' the country's debt dynamics. 'China's recent debt-rollover issues were not caused by excessive borrowing, but by overly harsh deleveraging policies that disrupted liquidity,' Xu wrote in the article titled 'Where Did Dalio Go Wrong on National Debt?' 'Rather than doubling down on deleveraging, we need to correct the mindset behind it, which has already weighed heavily on the macro economy,' Xu said. His comments, posted to social media on Thursday, came as economists and policy circles have been discussing whether more stimulus is needed in the second half of the year to shore up China's economy amid external uncertainties, a prolonged property downturn, and persistent deflationary pressures. Attention is now turning to an upcoming Politburo meeting that is expected to set the policy tone for the second half.
South China Morning Post
9 hours ago
- Business
- South China Morning Post
Why did a Chinese economist slam Ray Dalio's assessment of debt situations in US, China?
A prominent Chinese economist has pushed back against Bridgewater Associates founder Ray Dalio's views on the debt situations in China and the United States, as debate over the fiscal directions of the world's two largest economies heats up. Xu Gao, chief economist at Bank of China International (China), said in a recent 9,000-word article that Dalio was mistaken in calling for China to deleverage, arguing that such a view 'misjudges' the country's debt dynamics. 'China's recent debt-rollover issues were not caused by excessive borrowing, but by overly harsh deleveraging policies that disrupted liquidity,' Xu wrote in the article titled 'Where Did Dalio Go Wrong on National Debt?' 'Rather than doubling down on deleveraging, we need to correct the mindset behind it, which has already weighed heavily on the macro economy,' Xu said. His comments, posted to social media on Thursday, came as economists and policy circles have been discussing whether more stimulus is needed in the second half of the year to shore up China's economy amid external uncertainties, a prolonged property downturn, and persistent deflationary pressures. Attention is now turning to an upcoming Politburo meeting that is expected to set the policy tone for the second half. In the US, worries over the sustainability of US government debt have intensified following the passage of the 'Big Beautiful Bill' , which raised the debt ceiling by US$5 trillion and prompted warnings of a looming 'debt bomb' from figures such as Elon Musk and Dalio. Dalio, the billionaire investor and founder of one of the world's largest hedge funds, has long advocated for a 'beautiful deleveraging' strategy in China to address its debt challenges.
Daily Mail
12 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
14 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
