Dalio Warns of Looming Debt Crisis, Recommends Gold and Bitcoin Allocations

Investors are being urged to diversify their portfolios and consider holding 'a bit' of Bitcoin as a hedge against potential debt crises.

Ray Dalio, founder of Bridgewater Associates, recommends allocating between 10% to 15% of one's portfolio in gold, while overweighting Bitcoin and gold compared to bonds.

Dalio warned that the US is heading towards a debt crisis within three years if current trends continue, citing internal political and external geopolitical conflicts as major risks.

He emphasized the importance of being prepared for potential economic disruptions, saying 'my guess, which I suppose will be a bad one,' is that a US debt crisis will occur in about three years.