Dalio’s Emergency Warning: 15% Bitcoin-Gold Split Could Save Your Portfolio

During an appearance on the Master Investor podcast, Dalio recommended investors seeking the best return-to-risk ratio balance allocate up to 15% of their assets to gold and Bitcoin – with splits at their will. Previously, Ray warned that the U.S. would run a $2 trillion budget deficit this year and incur another $1 trillion in interest payments.

The billionaire founder outlined three asset strategies: Treasury Inflation-Protected Securities (TIPS) for real returns, 10–15% of portfolios in gold, and a Bitcoin allocation that he has supported since 2021.

The United States is projected to collect roughly $5 trillion in revenue against $7 trillion in spending for the fiscal year, adding $2 trillion to its deficit. Debt-service obligations alone will cost more than $1 trillion, creating what Dalio described as a “debt doom loop.”

Dalio compared the U.S. debt trajectory to a “financial heart attack,” highlighting the political and economic challenges of cutting spending, raising taxes, or pushing down interest rates. The budget deficit currently stands at about 6.5% of GDP.

The investor noted that reducing the deficit to a more sustainable 3% of GDP would require significant policy changes. He pointed to the difficulty of implementing such measures given current political dynamics.

Dalio’s stance on Bitcoin has evolved since 2021, when he began viewing the cryptocurrency as an uncorrelated store of value alongside traditional hedges like gold. He has maintained this position despite Bitcoin’s price volatility over the past several years.

The recommendations echo themes from Dalio’s 2023 book, “How Countries Go Broke,” in which he outlines the “big debt cycle” and examines past debt crises. The book details how countries have historically managed severe fiscal challenges.

Bridgewater Associates manages approximately $154 billion in assets and ranks among the world’s largest hedge funds. Dalio founded the firm in 1975 and stepped down from day-to-day management in 2022.

The U.S. national debt currently exceeds $33 trillion, with interest payments consuming an increasing share of federal revenue. The Congressional Budget Office projects continued growth in both debt levels and servicing costs over the next decade.