Hedge-fund billionaire Ray Dalio warns of America’s growing debt crisis, with national debt hitting a record $38.4 trillion. The U.S. government spends nearly $1 trillion annually on interest payments alone. The Treasury paid $11 billion weekly in 2026 to service debts, comprising 15% of federal spending.

The U.S. ran a $1.83 trillion deficit in fiscal 2024, with projections to reach $1.9 trillion by the end of 2025. Despite rising debt levels, Dalio believes the U.S. won’t default but faces currency depreciation risks. Inflation hit a 40-year high in June 2022, with essentials like food and housing costs surging.

To hedge against economic uncertainty, Dalio recommends diversification and investing in gold. Gold is a safe haven asset with intrinsic value, serving as an effective hedge during market downturns. Dalio suggests holding 10 to 15% of a portfolio in gold to mitigate risks and protect against currency devaluation.

Real estate presents another opportunity for diversification. Platforms like Arrived allow investors to buy stakes in rental properties, earn dividends, and avoid property management responsibilities. Commercial real estate, offered by First National Realty Partners, provides access to institutional-quality properties with minimum investments of $50,000.

For those seeking alternative assets, art investment through Masterworks offers fractional shares of blue-chip artwork by renowned artists like Banksy and Picasso. Art investments have shown competitive returns, offering a unique opportunity to diversify portfolios and hedge against market volatility. Masterworks provides access to exclusive art investments for both accredited and non-accredited investors.

Read more at Yahoo Finance: Ray Dalio warned America’s in a ‘debt death spiral’, with US dollar at risk. Here’s the shockproof asset he recommends