Investors should be well-diversified according to billionaire investor Ray Dalio, founder of Bridgewater Associates.
Dalio thinks there’s an economic shift that will soon happen. He used history to explain the looming global currency threat.
He likened the dollar move to the Dutch & British empires. The massive amount of printing seemed uncomfortable for Dalio and he referred back to the gold standard on a few occasions.
The threat started when the U.S. moved off the gold standard in the 1970s. One anecdote Dalio mentioned was when he was a clerk on the floor of the stock exchange when Nixon removed the gold standard.
He said that he expected stocks to tank. However, he noted that equities did the opposite. He added that he later realized that this is because they could now expand the number of dollars in circulation as it was not governed by a hard asset.
In previous empires, there was always a tendency to print money in times of need. As with the past, this could be the starting point of the US Dollar’s demise.
Dalio wrapped up his discussion, saying the dollar has never had a competitor. But Bitcoin and China’s potential new digital currency could be it.
That spells all the difference.
China holds $1 trillion worth of U.S. debt and if the devaluing keeps taking place, this could be a major catalyst for change.
The best way to protect yourself, Dalio said that if there is to be a de-dollarization event, then investors will need to diversify.
Pick a few assets that would thrive in that scenario. Being over-exposed to one asset, for example, bitcoin presents its own problems.
You need to hold different assets that play different roles.
You should be in the market, bonds, ETFs, crypto, and of course, precious metals to protect all those assets.
The dollar is finally facing real threats and as much as we want to stop it, the global economy is evolving too fast and too radically for any one person or any one country to control.
The only thing you can do as an investor is to diversify and protect your investment with gold and other precious metals.
Gold is the only asset in history that has thrived through all economic downturns. With how the biggest investors are still running to it to this day, it proves gold’s position as a safe haven is not about to change.
So if you have any money in the market, in bonds, ETFs, crypto, and other investments, it’s time you think about investing in gold to protect everything else.