Bridgewater's Ray Dalio Warns US Debt Crisis Could Arrive Within Three Years, Advises Reducing Bond Allocations and Increasing Gold and Bitcoin Holdings

Bridgewater founder Ray Dalio warned on Friday that the U.S. annual budget deficit is as high as $2 trillion, with approximately $10 trillion in debt urgently requiring refinancing. Without a change in course, a debt crisis could arrive "in three years, plus or minus two years." In terms of asset allocation, Dalio recommends that investors: • Reduce bond holdings to mitigate debt risks • Increase gold positions, raising the allocation to 10%–15% of the portfolio • Hold a small amount of Bitcoin to hedge against government credit risk Dalio also urged the United States to cut its budget deficit from the current level of approximately 6% of GDP down to 3%, through measures including spending reductions, tax hikes, and lower interest rates. Following these comments, gold prices rose on Friday to their highest level since May, while Bitcoin surpassed $77,000, marking its largest weekly gain since 2023.