Ray Dalio, founder of Bridgewater Associates and renowned hedge fund manager, warns investors to pivot away from bonds amid mounting concerns over unsustainable global debt levels. Speaking at the Abu Dhabi Finance Week, Dalio advocated for "hard money" assets like Bitcoin and gold as safer investment alternatives.
The billionaire investor highlighted the unprecedented debt accumulation in major economies, particularly in the United States and China. "It's impossible for these countries to be able to not have a debt crisis," Dalio cautioned, predicting substantial currency devaluation in the coming years.
This stance marks an evolution in Dalio's perspective on Bitcoin. While initially skeptical of cryptocurrencies in 2020, citing concerns about volatility and government control, he later embraced Bitcoin as value part of a balanced investment strategy. By 2022, he recommended allocating 1-2% of investment portfolios to Bitcoin.
During his Abu Dhabi appearance, Dalio emphasized his current investment preference: "I want to steer away from debt assets like bonds and debt and have some hard money like gold and Bitcoin."
His warning comes as Bitcoin recently reached an all-time high of $103,679, though it has since settled around $99,827. The cryptocurrency's performance appears to validate Dalio's investment thesis, showing strong gains amid growing concerns about traditional financial markets.
The hedge fund veteran specifically pointed to Germany as an exception, while expressing particular worry about other major economies' debt trajectories. His analysis suggests that traditional safe-haven investments like bonds may no longer offer adequate protection against looming economic challenges.
Dalio's latest comments reflect a growing sentiment among high-profile investors who see cryptocurrencies and precious metals as potential hedges against economic instability and currency devaluation.