Ray Dalio Recommends Gold as a Hedge Against U.S. Markets at Risk of Heart-Attack Collapse

Ray Dalio, founder and former CEO of Bridgewater Associates, suggested that gold could serve as a protective hedge for investors exposed to unstable, debt-laden markets.

Dalio warned that as the U.S. spends more to service its mounting debt, “other expenditures are squeezed,” creating a buildup similar to plaque forming in the human circulatory system.

He explained, “A doctor may warn you about the risk of a heart attack.”

Having sold his remaining stake in Bridgewater in July and formally stepped away from the hedge fund he founded, Dalio advised that “a well-diversified portfolio should include between 10% and 15% in gold.”

Speaking at the launch event of Abu Dhabi Finance Week in December, Dalio highlighted that gold remains uncorrelated with other assets and tends to gain value during crises when other investments decline.

He further noted that with the world “deep in debt” and geopolitical tensions escalating, investors should ask themselves “whose money do you hold?” while building a more neutral portfolio.

Bill Winters, CEO of Standard Chartered and a fellow panelist, remarked that while market valuations in Europe are not as high as in the United States, the underlying conditions are similar.

“Britain and France are facing comparable challenges, though their markets are applying tighter restrictions than those in the U.S.,” Winters said.

Meanwhile, the S&P 500 and Nasdaq, which have climbed more than 11% and 13% respectively this year, closed at record highs on Wednesday. These gains were supported by inflation figures that came in below expectations, boosting hopes that the U.S. Federal Reserve will cut interest rates next week.

The pan-European STOXX index (.STOXX) has also risen by just over 8% so far in 2025.