Bridgewater founder Ray Dalio advocates investing in gold, Bitcoin, rather than 'debt assets'.

Ray Dalio, founder of the world's largest hedge fund, Bridgewater Associates, warned that the debts of the United States, China, and many other countries around the world are skyrocketing at an 'unprecedented' pace, and the debt crisis will ultimately be unavoidable. In response to this situation, he reminded investors to avoid chasing 'debt-based assets' and to turn their attention to 'hard currency' such as gold and bitcoin.

On Tuesday, Ray Dalio pointed out at the Abu Dhabi Financial Week, "I think we are about to face a debt and currency crisis." He further emphasized:

I hope to avoid debt assets like bonds and instead hold hard currency like gold or Bitcoin (BTC).

Recently, both gold and Bitcoin have reached historical highs, becoming popular choices for market hedging. Against the backdrop of increasing economic uncertainty, escalating geopolitical tensions, and a shift in monetary policy, Bitcoin's performance is particularly eye-catching.

Last week, the price of BTC broke through $100,000 for the first time. In addition to market enthusiasm, the friendly attitude of the newly elected U.S. President Trump towards Cryptocurrency also played a supportive role. The concept of 'hard currency' typically refers to currencies supported by physical assets (such as gold, silver), or limited-supply digital assets (such as Bitcoin).

Ray Dalio warns that the debt burden of major countries around the world, except Germany, is increasing at an unsustainable pace. He said:

In the coming years, these countries will inevitably fall into a debt crisis, which will lead to a sharp decline in currency value.

Ray Dalio believes that the future global situation will be driven by 5 core forces, of which "debt, currency and economy" is only one of them. He also lists the following 4 key factors:

Domestic political order: Political turmoil caused by disparities in wealth and divergent values among countries will become more frequent;

International Geopolitical Order: The power struggle between countries, especially the tension between the United States and China, will profoundly affect the global situation.

The impact of natural forces: droughts, floods, epidemics, and climate change, among other natural disasters, are becoming increasingly severe challenges that humans cannot ignore.

The impact of technological disruption: The birth of new technologies will continue to reshape the world, changing our way of life and economic structure.

When it comes to technological innovation, Ray Dalio says he prefers to invest in companies that use technology to enhance their business rather than those that rely solely on product sales and service.

Investment method: Focus on long-term trends, ignore short-term noise

After completely relinquishing the management rights of Bridgewater Associates in October 2022, Ray Dalio is currently responsible for guiding Bridgewater's investment strategy planning team. At Tuesday's event, he advised investors:

Don't be led by the short-term Fluctuation of daily news, you should focus on following the long-term trend.

Ray Dalio reminds us that investment strategies should have a global perspective and tactical flexibility, and be aware that the future's uncertainty far exceeds what we can grasp. He emphasizes that 'diversification' and 'functionality' are essential elements in investment portfolios, so that one can navigate the intertwined environment of threats and opportunities with ease.

Bridge Water founder Ray Dalio advocates investing in gold and Bitcoin, not "debt-based assets". This article was first published in "Block Client".