Dalio, founder of Qiaoshui Fund: Warns that the US debt crisis will arrive within three years as soon as possible. It is recommended to reduce bond holdings and increase the allocation of gold and Bitcoin

Comparing news, Dalio, founder of the Bridgewater Fund, warned that the US annual balance gap is as high as 2 trillion US dollars, and that about 10 trillion US dollars of debt needs to be refunded urgently. If the current trajectory is not changed, the debt crisis “within three years, with an error of up and down” of two years, may arrive.

In terms of asset allocation, Dalio suggests investors reduce their bond holdings to avoid debt risks; increase their holdings to 10% to 15% of the portfolio by allocating additional gold; and hold a small amount of Bitcoin to hedge against government credit risk. Dalio also called on the US to reduce the budget deficit from the current level of about 6% of GDP to 3%, including by cutting spending, increasing taxes, and lowering interest rates.

Affected by these remarks, the price of gold rose to its highest level since May on Friday, and Bitcoin surpassed $77,000, the biggest weekly increase since 2023.