Ray Dalio Advocates for 15% Portfolio in Bitcoin and Gold Amid US Debt Crisis
- Ray Dalio suggests a portfolio allocation of about 15% in Bitcoin or gold to optimize the return-to-risk ratio.
- The current US national debt stands at $36.7 trillion, with expectations of needing to issue an additional $12 trillion in Treasurys over the next year.
- A recent US Treasury report projects $1 trillion in new borrowing for Q3, exceeding previous estimates by $453 billion.
- Dalio holds some Bitcoin but prefers gold, emphasizing that the split between them is personal choice.
- Currently, Bitcoin trades at around $118,100, approximately 4% below its all-time high of $123,230.
Dalio’s recommendation comes as the US faces significant fiscal challenges, highlighting concerns about currency devaluation and reliance on debt financing. He notes that other Western nations share similar issues regarding their currencies’ performance against hard assets like Bitcoin and gold.
In light of these economic conditions, Dalio’s suggestion to allocate 15% of one’s portfolio into Bitcoin or gold reflects a shift from his earlier stance advocating only a 1% to 2% allocation for Bitcoin in January.(Source)
