Founder of Qiaoshui Fund: The risk of US bonds is rising. It is recommended to reduce bond holdings, increase gold holdings, and a small amount of Bitcoin

Comparing news, the founder of the Bridgewater Fund, Ray Dalio wrote that recent events such as the Japanese government's sale of some US bonds, record high yields on US long-term treasury bonds while weakening the US dollar, and the US Treasury's announcement to buy treasury bonds are highly similar to the “classic debt restructuring template” proposed by the US Treasury.

Dalio believes that when the growth rate of government debt exceeds the growth rate of revenue, interest expenses will continue to squeeze fiscal space; if the supply of treasury bonds exceeds market demand, it may push yields to rise further and force the central bank to stabilize the market by purchasing treasury bonds and increasing the money supply, thereby weakening the value of money.

In this context, Dalio proposed reducing bond allocations, increasing non-debt assets such as gold, and allocating a small amount of Bitcoin.