Dalio's Latest Advice: Allocate 5% to 15% of Investment Portfolio to Gold Amid Uncertainty

On April 28, Ray Dalio, founder of the world’s largest hedge fund Bridgewater, advised that due to the high uncertainty brought by the Iran war, investors should allocate 5% to 15% of their investment portfolios to gold. The Iran war has entered its ninth week, and the world is facing various uncertainties. Dalio pointed out that a major concern globally is whether the U.S. can win this war, while also mentioning domestic pressures such as rising oil prices, the upcoming summer travel season, and midterm elections. He also hopes to keep the conflict relatively short-term. Another key issue is who will ultimately control the Strait of Hormuz. Dalio also noted that with the recent increase in the use of the renminbi in international transactions, along with U.S. sanctions and changes in global trade, the market’s understanding of ‘what constitutes currency’ is changing. He emphasized the importance of understanding gold as a form of currency, as it is the oldest currency and the second-largest reserve currency held by central banks. He added that gold also serves as a diversification asset, which is particularly beneficial for its performance in such an environment. (Dongxin News Agency)