Dalio Says Prepare Now
Ex-hedge fund manager and billionaire Ray Dalio is a big name when it comes to Wall Street and definitely worth listening to when he talks. This week, he addressed the U.S. debt and macro situation once again.
To sum it up: Debt is way too high and getting out of hand. According to Dalio, a debt crisis could be on the horizon within the next couple of years.
To solve this, Dalio said the U.S. needs to carefully employ a three-part strategy to bring the budget deficit down to 3% of GDP.
First, the U.S. government needs to reduce spending. Second, tax revenue needs to increase. Finally, the New York native and Harvard Business School alumnus said lower interest rates are needed.
“All three need to happen concurrently so as to prevent any one from being too large,” Dalio said. “If any one is too large, the adjustment will be traumatic.”
And what are investors supposed to do?
Dalio’s advice: Avoid bonds and put a substantial part of your portfolio into Gold and Bitcoin. His number is 15%. I don’t think he’s wrong. Do you?
