Ray Dalio advises investing in TIPS, gold, and bitcoin to hedge against US debt crisis

From Yahoo Finance: 2025-06-27 19:04:00

Ray Dalio warns of a looming financial crisis due to spiraling US debt levels. The US faces a $2 trillion deficit and $1 trillion in interest payments this year. Dalio advises hedging against inflation with TIPS, gold, and bitcoin. The US must cut spending, raise tax revenue, and lower interest rates to reduce the deficit. With the risk of a recession, the debt situation could worsen as government borrowing tends to increase. Dalio recommends investing in TIPS, gold, and bitcoin to protect against inflation and diversify portfolios. Gold is a time-tested store of value providing diversification, inflation protection, and a hedge against geopolitical risks. Bitcoin can also bolster a portfolio, as Dalio has changed his mind on the cryptocurrency over the years.

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