Ray Dalio issued a stark warning to Americans. Here’s the assets he likes for protection
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Billionaire investor Ray Dalio is sounding the alarm, saying the U.S. economy’s headed toward an “economic heart attack.”
In a June post on X to promote his new book, How Countries Go Broke: The Big Cycle, Dalio gave a stark diagnosis of America’s financial health (1).
Dalio compared the economy to the human circulatory system, with credit being the lifeblood fueling productivity and growth. Credit builds something productive, generating some form of income, efficiency or growth, he argued.
But over time, when that borrowing doesn’t generate enough return, it becomes debt that sticks around. And as that builds up irresponsibly, it turns into plaque, clogging the arteries.
Dalio says that America’s debt has reached levels that threaten to choke off blood flow. He explains that while governments can print money and raise taxes, these tools come with consequences: devalued currency, rising inflation and squeezed public spending.
“All these things lead toward a government debt crisis which produces the equivalent of an economic heart attack,” he warned.
Dalio compared the current economic situation with that of 1929 (2), the year of the ‘Great Crash’ on Wall Street. In Dalio’s words, “The parallels between that era and now are striking.”
So what can savvy investors do to avoid this impending economic doom? Well, a lack of confidence in the traditional banking system can potentially boost the value of alternative assets considered insulated from the market. Here are Dalio’s recommendations for two relatively shockproof assets.
The billionaire feels strongly about gold because it tends to do well in tumultuous times.
Dalio’s post on X this June also noted that America’s economic problem isn’t unique. Other countries like Japan, the U.K. and China all have similar debt and deficit problems: “I expect a similar debt and currency devaluation adjustment process in most countries, which is why I expect non-government-produced monies like gold and bitcoin to do relatively well.”
Since gold can’t be printed, and it isn’t tied to a single country, currency or economy, it can provide a safer alternative investment strategy during challenging times. Gold has surged approximately 60% over the past year and skyrocketed by more than 750% in the last 20 years as of December 15 (3).
“Having a small percentage of one’s money in gold can reduce the portfolio’s risk, and I think it will also raise its return,” Dalio wrote on X.
A gold IRA allows you to invest in gold and other precious metals in physical forms while also providing the significant tax advantages of an IRA.
If you’re not sure where to start, you can check out some of Moneywise’s top picks for gold IRAs to compare your options for free. Just keep in mind that gold is often best used as one part of a well-diversified portfolio.
Dalio concluded that same X post by answering a pressing question for many: how should investors navigate financial risk going forward?
“Everyone’s financial situation is different, but as general advice, I suggest diversifying well in asset classes and countries that have strong income statements and balance sheets and are not having great internal political and external geopolitical conflicts, underweighting debt assets like bonds, and overweighting gold and a bit of bitcoin.”
Cryptocurrencies like Bitcoin are another asset that, like gold, avoids being tied to any specific country or currency, which can make them helpful in diversifying your portfolio during globally stressful times.
But not all cryptocurrencies are created equally. For instance, bitcoin — the world’s largest cryptocurrency — struck a new all-time high of $126,000 per coin in October. Yet, as of December 15, bitcoin’s price has tumbled 30% from its record high, now falling below $86,500 (4).
According to an article in Barron’s (5), this may have to do with Federal Reserve Chair Jerome Powell, and his remarks that the central bank might not cut rates as much, if at all, in 2026. Should that turn out to be true, Barron’s suggests Bitcoin could suffer due to its high risk.
Bitcoin is an inherently risky asset, and anyone investing should be prepared for a more volatile ride than one would expect with the stock market.
If you’re looking to get into the crypto market, one popular option is Robinhood Crypto. The platform allows users to buy and sell crypto with as little as $1, giving you the flexibility to start with small amounts before deciding whether crypto is right for you.
Even better, Robinhood has the lowest trading cost on average in the U.S. — meaning you could get up to 2.6% more crypto compared to trading on other platforms.
Gold and bitcoin fall under Dalio’s investment preference for uncorrelated assets. In a social media video (6), Dalio shared that his “Holy Grail of investing” is to “find 10 to 15 good, uncorrelated return streams.”
By investing in assets with returns that don’t depend on one another, you can help keep your risk levels low.
“If you find several return streams, a number of investments that are good and uncorrelated, you will have the average return of those, so you don’t lessen your return,” he said.
Fine art can be a powerful addition to a diversified investment strategy. Like gold or crypto, it isn’t tied to any single currency or country — making it a potentially valuable hedge for uncertain times.
Post-war and contemporary art outpaced the S&P 500 by 15% from 1995 to 2025 while showing near-zero correlation to traditional equities.
Until recently, this world was off-limits. Now, with Masterworks, you can buy fractional shares in multimillion-dollar works by icons like Banksy, Picasso and Basquiat. While art can be illiquid and typically requires a long-term hold, it offers unique portfolio diversification.
Masterworks has sold 25 artworks so far, yielding net annualized returns like 14.6%, 17.6%, and 17.8%.*
*Past performance is not indicative of future returns. Investing involves risk. See important Regulation A disclosures at [Masterworks.com/cd
While Dalio’s suggestions might be helpful, it’s always a good idea to speak with a financial advisor before making any big investment decisions.
A skilled advisor can help determine the right asset mix for your portfolio depending on your risk tolerance, investing timeline and financial goals.
Research from Vanguard suggests that working with a financial advisor can add about 3% to net returns over time.
If you’re not sure where to find a qualified advisor, Advisor.com can help match you with an advisor who can meet your particular needs. The platform’s advisors are also fiduciaries, meaning they’re legally obligated to act in your best interests.
From there, you can book a no-obligation call to see if they’re the right fit for you.
