We thought we had a handle on the investment game, right? But now Ray Dalio, the big boss behind Bridgewater Associates, threw a curveball. He says the ideal number is 15%.
Debt is growing
Once upon a time, not too long ago, in January 2022 Dalio was cool with recommending just a tiny nibble of Bitcoin , something like 1-2% of your portfolio.
It was the cautious play, the let’s not get too wild approach. But now? Boom! He’s shouting from the rooftops to put a solid 15% into Bitcoin or gold.
Fifteen percent! Why the turn? Well, the magnificent beast called U.S. debt has grown into a monster that even Dalio can’t ignore, that’s why.
America’s broke, in a way that makes your office coffee budget look laughable. National debt is $36.7 trillion, and growing, with the Treasury planning to borrow another $12 trillion in the next year alone.
It’s like maxing out your credit card and then applying for a new one every day! This kind of reckless borrowing spells bad news, it’s the kind of mess that leads to the dollar losing its value faster than a donut disappears at an office meeting.
The old and the new guard
Dalio calls it straight, and says the real problem is money losing value. So, what’s the wise guy’s play?
Gold and Bitcoin, the old and new guards of hard assets that don’t take crap from a bankrupt system.
Think of them like your emergency stash of snacks in a day-long meeting, when everything else runs dry and disappointing, these save your day.
Now, Dalio’s got a soft spot for gold, which makes sense btw, it’s the classic, the godfather of hedging. But he’s not shunning Bitcoin either.
He admits, how much you put into each, that’s on you. It’s a rebel move, really, because Bitcoin’s got some skepticism attached, it’s too transparent for Dalio’s liking, kinda like that one over-sharing coworker who knows way too much about everyone.
Worthless paper?
And the thing is, this warning likely isn’t just America’s problem. Other Western powers, like the UK, are neck-deep in similar debt trouble, and their money’s on shaky ground too.
It’s a debt doom loop, as Dalio says. Inflation two point zero. So, if you’re worried about Uncle Sam’s IOUs turning into worthless paper, you’re probably right, and you’d better start thinking about that 15% hedge Dalio’s preaching.
