Dalio Warns of US Debt Crisis, Recommends Diversification into Gold and Bitcoin

Billionaire investor Ray Dalio is warning of a potential US debt crisis and advising investors to diversify their portfolios. He estimates that the US government's revenue will total $5.5 trillion this year, while spending will reach $7.5 trillion, resulting in a deficit of roughly $2 trillion.

Dalio believes that without a shift in fiscal policy, a debt crisis could emerge within three years. To mitigate this risk, he recommends reducing bond allocation and diversifying across assets and countries.

Specifically, Dalio advises investors to hold 10-15% of their portfolio in gold, which he views as a safer-haven asset. He also suggests adding 'a little' Bitcoin to their portfolio, expecting non-government-produced monies like these to perform relatively well.