Ray Dalio says today is like the early 1970s and investors should hold more gold than usual

Ray Dalio warns that current economic conditions resemble the early 1970s, advising investors to allocate 15% of their portfolios to gold for better diversification.

At the Greenwich Economic Forum on Tuesday, Ray Dalio, founder of Bridgewater Associates, emphasized the importance of gold as a portfolio diversifier amidst rising inflation concerns.
Dalio suggested that investors should consider holding approximately 15% of their portfolios in gold, reflecting a strategic asset allocation approach during uncertain economic times.
He drew parallels between today's economic climate and the early 1970s, a period marked by inflation and market volatility, underscoring the precious metal's role as a hedge.

Why It Matters

Dalio's advice highlights a growing concern among investors about inflation and economic instability, suggesting a significant shift in asset allocation strategies. As inflationary pressures mount, gold's historical role as a safe haven may become increasingly relevant.