Ray Dalio exits Bridgewater completely, warns of economic collapse, and boosts Bitcoin and gold allocation to 15%.
In a symbolic end to a legendary career, billionaire investor Ray Dalio has officially severed all ties with Bridgewater Associates, the hedge fund he founded nearly five decades ago.
Dalio sold his final stake in the firm, according to a report by the Wall Street Journal, stepping away from the board and completing his full transition out of the company. This move follows years of gradually relinquishing control, beginning with his step-down as CEO in 2017 and his eventual resignation as chairman in 2021.
The final transaction saw Dalio’s remaining shares acquired and subsequently redistributed to new investors, including Brunei’s sovereign wealth fund, which now holds an estimated 20% stake in the company.
In a post on X (formerly Twitter), Dalio expressed a sense of closure and pride in what he built:
“I love seeing Bridgewater alive and well without me, even better than alive and well with me,” he wrote.
From Founder to Forecaster: Dalio's Dire Debt Warnings
Though Dalio has left the building, he hasn’t left the conversation. Known for accurately predicting the 2008 financial crisis, Dalio has since taken on a prophetic role in global macroeconomic circles. Most recently, he warned that the world is heading toward something “worse than a recession,” driven by unsustainable debt levels, trade dislocations, and declining geopolitical cooperation.
His outlook? Bleak.
“When a country is overloaded with debt,” Dalio wrote, “the preferred path is to lower interest rates and devalue the currency.”
He’s especially concerned about the United States.
Unless the U.S. reduces its budget deficit to around 3% of GDP, Dalio warns, it could suffer what he called an “economic heart attack.”
Bitcoin and Gold: Dalio’s New 15% Hedge Recommendation
Perhaps most striking is Dalio’s latest portfolio recommendation: allocating up to 15% of investment portfolios to Bitcoin and gold, a massive jump from his previous 2% suggestion.
This move reflects his growing concern that traditional fiat systems may not weather the next economic storm.
Dalio has never been a full-blown crypto evangelist, but his respect for Bitcoin’s design is clear.
“Bitcoin is one hell of an invention,” he once wrote in a now-famous 2021 essay titled What I Think of Bitcoin.
Still, his preference leans toward gold over crypto. In his view, gold remains the more stable store of value, especially for institutional portfolios.
Not Always the Oracle: Dalio’s Past Misfires
While many investors hang on Dalio’s every word, not all his predictions have landed. In 1982, for instance, he incorrectly forecasted a global depression, a call that led to enormous losses at Bridgewater. He has openly admitted being “dead wrong,” an experience that nearly bankrupted the firm.
Skeptics today point to a pattern in some of Dalio’s forecasting: sweeping generalizations, timing uncertainties, and confirmation bias. Despite his reputation, not everyone is convinced his latest warnings will materialize as predicted.
Still, Dalio's voice carries weight, especially in times of uncertainty. Whether or not his warnings prove accurate, his pivot toward Bitcoin and gold speaks volumes about where he sees value in an increasingly unstable world.
