Ray Dalio Sounds the Alarm: Why He Says Gold Is Your Lifeline
The metal’s strength reflects safe-haven demand amid market volatility and expectations of an imminent Federal Reserve rate cut.
Quick overview
- Ray Dalio, founder of Bridgewater Associates, emphasizes gold as a crucial 'store of value' amid rising U.S. debt and geopolitical tensions.
- Dalio recommends investors allocate 10% to 15% of their portfolios to gold, citing its resilience during crises and low correlation with other markets.
- He warns that increasing debt levels could lead to a financial 'heart attack,' reducing essential spending.
- Bill Winters, CEO of Standard Chartered, supports Dalio's concerns, highlighting tightening financial conditions in Europe despite record-high equity markets.
The founder of the world’s largest hedge fund has once again pointed to gold as a key “store of value” amid mounting volatility in bonds and equities.
Dalio Backs Gold as a Safe Haven
Ray Dalio, billionaire investor and founder of Bridgewater Associates, reignited the debate over the risks facing the global financial system during a panel at Abu Dhabi Finance Week. He warned that rising U.S. debt levels and growing geopolitical tensions are creating an increasingly fragile backdrop for markets.
Dalio compared the situation to a clogged circulatory system: “As the country devotes more resources to paying its debt, other essential spending gets reduced. A doctor would say this is the prelude to a heart attack,” he noted.
Against this backdrop, Dalio advised investors to allocate between 10% and 15% of their portfolios to gold—a historically resilient asset that performs well in times of crisis and maintains low correlation with other markets.
Gold is currently trading around $3,678 per ounce after posting a modest daily gain. The metal’s strength reflects safe-haven demand amid market volatility and expectations of an imminent Federal Reserve rate cut, following softer inflation data.
Dalio also urged investors to reconsider “who really owns their money” when building more resilient portfolios in a world “overloaded with debt.”
Global Financial Risks Highlighted
Sharing the stage with Dalio, Bill Winters, CEO of Standard Chartered, echoed concerns about tightening financial conditions, noting that Europe faces challenges of its own. While equity valuations are not as stretched as in the U.S., he warned that countries like the U.K. and France are contending with equally severe constraints.
Meanwhile, equity markets remain at record highs: the S&P 500 and Nasdaq are up more than 11% and 13%, respectively, so far in 2025, fueled by expectations of a monetary easing cycle. In Europe, the pan-European index has gained over 8% year-to-date, though caution lingers over the sustainability of the rally.
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