Ray Dalio, founder of Bridgewater Associates and one of the most influential voices in global finance, has issued a quiet yet powerful recommendation on why investors should consider allocating up to 15% of their portfolios into Bitcoin or gold. Dalio’s advice conveys a deeper message that the old playbook may no longer be applicable, and it’s time to prepare for a new financial era.
Legendary Investor Sounds The Alarm On Global Economic Risks
The billionaire investor Ray Dalio, founder of Bridgewater Associates, and one of the most influential voices in global macro investing, is urging investors to prepare for turbulent times. According to Yahoo Finance, Dalio advised investors to allocate at least 15% of their portfolios to Bitcoin or gold, as a hedge against rising risks tied to government debt and macroeconomic instability.
On the Master Investor podcast with CNBC, Ray Dalio shared a compelling piece of portfolio strategy advice. If an investor is neutral on everything and unsure of which assets will outperform in an uncertain macro climate, then allocating 15% into gold or BTC could offer the most favorable risk-to-reward ratio.
However, he emphasized that he prefers gold over BTC, but the choice ultimately depends on the investor’s conviction and strategy.
Dalio stressed that the United States is facing a massive fiscal imbalance, with a national debt level six times greater than its annual revenue. He also noted that to sustain current spending levels, the government may need to issue $12 trillion worth of bonds in the coming year to fund this debt.
Furthermore, he revealed that he still holds BTC from his first initial purchase back in May 2021. Dalio acknowledged BTC’s appeal and cited its limited supply, transactional advantages, and many people believe that it functions as a credible form of money.
That said, Ray Dalio clarified that he does not believe central banks will hold BTC as a reserve asset because it lacks privacy.
Sequans Doubles Down On Bitcoin Amid Market Volatility
Sequans also revealed on X that the company has acquired an additional 755 BTC for $88.5 million, bringing its total holdings to 3,072 BTC. With an average purchase price of $116,690, the IoT chipmaker Sequans continues its BTC treasury strategy.
Sequans Communications has now invested a total of $358.5 million into BTC so far. The purchases were made using proceeds from its July equity offering. The firm views BTC as a long-term treasury asset, and the SQNS share prices have been turbulent. This bold treasury allocation underscores Sequans’s belief in BTC’s durability amid a shifting macroeconomic landscape.
Featured image from iStock images, chart from tradingview.com
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