Ray Dalio on Gold

Ray Dalio is an American billionaire investor and hedge fund manager, who have served as co-chief investment officer of the world’s largest hedge fund, Bridgewater Associates, since 1985. He founded Bridgewater in 1975 in New York.

He’s built a legendary career spanning six decades in which he grew his firm, Bridgewater Capital, from a small investment shop in his apartment into one of the largest and most successful hedge funds in history.

He is always a believer in holding little bit of gold in your portfolio.

Ray Dalio has some points on holding assets which are:

• Holding assets that have low real and nominal expected returns that are also providing historically low returns relative to cash returns (because of the enormous amount of money that has been pumped into the hands of investors by central banks and because of other economic forces that are making companies flush with cash).
• These are unlikely to be good real returning investments and that those that will most likely do best will be those that do well when the value of money is being depreciated and domestic and international conflicts are significant, such as gold.
• Additionally, for reasons he explain in the near future, most investors are underweighted in such assets, meaning that if they just wanted to have a better-balanced portfolio to reduce risk, they would have more of this sort of asset. For this reason, he believes that it would be both risk-reducing and return-enhancing to consider adding gold to one’s portfolio.

As marked in above statement of Ray Dalio on Gold is strong primarily for two reasons:

• The possibility to generate an alpha return
• Diversification benefits

Investing in gold is a proven way to diversify an investment portfolio to generate attractive returns under a variety of market conditions.

Read more: Ray Dalio Gold Portfolio