Ray Dalio, founder of Bridgewater Associates, is once again sounding the alarm on global markets. Speaking at the Greenwich Economic Forum in Connecticut, the billionaire investor said today’s environment reminds him of the early 1970s — a period marked by inflation, heavy government spending, and eroding confidence in paper assets. His advice: investors should hold more gold than usual, as much as 15% of their portfolios, even with the precious metal trading at record highs above $4,000 per ounce.
Gold as a Strategic Hedge
"Gold is a very excellent diversifier in the portfolio," Dalio said. "If you look at it just from a strategic asset allocation perspective, you would probably have something like 15% of your portfolio in gold … because it is one asset that does very well when the typical parts of the portfolio go down."
Gold futures recently traded at $4,005.80 per ounce, up more than 50% this year. The surge reflects a flight to safety amid mounting fiscal deficits, geopolitical tensions, and expectations of further monetary easing.
Dalio emphasized that unlike debt instruments, which depend on repayment, gold functions as a storehold of wealth independent of counterparties. "Gold is the only asset that somebody can hold and you don’t have to depend on somebody else to pay you money for," he said.
A Break From Conventional Portfolio Advice
Dalio’s recommendation diverges sharply from the traditional 60-40 portfolio model — 60% equities, 40% bonds — that most financial advisors still promote. Typically, gold and commodities are suggested only in low single-digit allocations due to their lack of income generation.
But Dalio isn’t alone in calling for a heavier weighting. Jeffrey Gundlach, CEO of DoubleLine Capital, recently suggested investors consider allocating as much as 25% to gold, citing persistent inflationary pressures and a weakening U.S. dollar.
Historical Parallels: The 1970s Playbook
Dalio drew a direct comparison to the early 1970s, when inflation surged, government debt ballooned, and investors lost confidence in fiat currencies. Back then, gold prices soared as investors sought protection from monetary debasement.
"It’s very much like the early ’70s ... where do you put your money in?" Dalio asked. "When you are holding money and you put it in a debt instrument, and when there’s such a supply of debt and debt instruments, it’s not an effective storehold of wealth."
The implication is clear: in today’s environment of high debt issuance, fiscal deficits, and political uncertainty, gold may once again serve as a critical hedge.
Dalio's Portfolio Moves
Dalio’s broader portfolio activity also reflects a cautious but opportunistic stance. According to recent filings, Bridgewater has made significant adjustments:
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Sold Out: Alibaba (BABA), PDD Holdings (PDD), Baidu (BIDU),JD.com (JD) — signaling a retreat from Chinese tech giants.
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Added Aggressively: Nvidia (NVDA) +154%, Microsoft (MSFT) +112%, Alphabet (GOOGL) +84%, Meta Platforms (META) +90% — underscoring conviction in U.S. mega-cap tech.
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Healthcare Bets: Johnson & Johnson (JNJ) +668%, Uber (UBER) +531%, Salesforce (CRM) +57% — highlighting diversification into health and consumer platforms.
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Trimmed Holdings: SPDR S&P 500 ETF (SPY) -22%, Apple (AAPL) -62%, Constellation Energy (CEG) -85% — showing selective reductions in broad market exposure and energy.
These moves suggest Dalio is rotating away from China, doubling down on U.S. technology leaders, and keeping dry powder for uncertain times.
Why Gold Matters Now
For investors, Dalio’s call to hold 15% in gold is striking not just because of the number, but because it comes at a time when gold is already at record highs. Typically, gurus recommend buying gold when it’s cheap. Dalio, however, argues that the macro backdrop — debt, deficits, inflation, and geopolitical risk — outweighs valuation concerns.
The logic is that gold’s role isn’t about generating yield but about preserving purchasing power when traditional assets falter. With U.S. debt issuance at historic levels and global tensions rising, Dalio believes gold’s defensive qualities are more relevant than ever.
Investor Takeaway
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Gold Allocation: Dalio recommends up to 15% of portfolios in gold, far above conventional advice.
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Historical Context: He likens today’s environment to the 1970s, when inflation and debt undermined fiat currencies.
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Portfolio Shifts: Bridgewater has exited Chinese tech, boosted U.S. mega-cap tech, and trimmed broad market ETFs.
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Peer Support: Gundlach echoes the call, suggesting as much as 25% in gold.
The Bottom Line
Ray Dalio has built his reputation on spotting macroeconomic shifts before they become consensus. His latest warning — that today looks like the 1970s redux — is a reminder that even in an era dominated by AI and tech stocks, gold remains a cornerstone hedge.
For investors, the message is straightforward: don’t dismiss gold as a relic. In Dalio’s view, it may be the one asset capable of protecting wealth when everything else is under pressure.