Veteran asset manager Ray Dario advised investors to allocate at least 15% of their portfolio to gold; Bitcointhe risks of the bond and stock markets are increasing.
Speaking about the Master Investor Podcast, the founders of Bridgewater Associates argued that the macroeconomic risks associated with increasing government debt in the US and elsewhere are not priced in the market, and could ultimately face a major downturn.
The US government “we spend 40% more than we take in and we can’t actually cut our spending,” Dario said, adding, “it’s six times the amount of debt it takes, and with an interest payment of $1 trillion a year, that’s half (that) budget deficit.”
Dario also explained that the US government issuing more debts and that “only by printing the central bank (the Federal Reserve).
This could make the market even more surprising, with Dario suggesting that the trigger for a big crash controls another important quantitative mitigation, or the Federal Reserve.
According to Dario, signals for such events are beginning to “flash or flicker.”
Gold and Bitcoin
Because these risks are not being allocated to the market, Dario advises investors to allocate at least 15% of their portfolio to gold or Bitcoin.
Investors suggested he “strongly prefers” gold that he “strongly prefers” over Bitcoin, adding that he suspects that the central bank will take it. Cryptocurrency As a reserve currency, “it has no privacy because everyone can understand and see who is trading.”
Dario also claimed he was “doubted” about whether “the code could break” or whether Bitcoin’s protocol could be changed to make it “ineffective” as a valuable store.
Given these concerns, the veteran asset manager explained that Gold outweighs Bitcoin in its portfolio, saying, “I have gold, I have Bitcoin, but not that much.”
Such attention on Bitcoin is a more common sentiment among more traditional investors and investment advisors, said Laith Khalaf, head of investment analysis at AJ Bell. Decryption Faced with financial fear, investing in BTC is similar to “popping out of a frying pan and diving into a red hot, fiery pit.”
Khalaf asserted that investment in Bitcoin is a “fine” if investors are only allocating a small amount of money they are ready to lose, but he also claimed that it is gold (a more solid anchor) in the face of potential risk.
“Gold is a much more favorable diversification device than Bitcoin, as prices tend to rise when risk aversion is high,” he said. “It could be a useful insurance for your portfolio, but it holds important things along with stocks and bonds to achieve risk and compensation balances.”
Meanwhile, some experts highlight that in Cryptocurrency analysts and author Glen Goodman Telling, money can pose more risks than it is frequently promoted. Decryption The history of that particular period was difficult for metals.
“We don’t deny the volatility of Bitcoin’s price, but remember that those who bought gold during the inflation crisis of 1980 and held it for 20 years actually lost 85% of their money during that period,” he says. “Money didn’t begin to recover until the turn of the millennium.”
