Billionaire Ray Dalio believes that investment portfolios need to hold some Bitcoin (BTC), or even gold, as an insurance against the US dollar’s depreciation.
Wilfred Frosh, co-chief investor of Bridgewater Associates and host of the Master Investor Podcast says that as US debt increases and geopolitical tensions rise, a portfolio diversification should contain 15% gold or Bitcoin.
If you had no opinion and were optimising your portfolio to get the highest return on risk, then you’d have around 15% of your funds in either gold or bitcoin. Gold is my preferred currency over Bitcoin. But it’s all up to you .”
Investors use the Risk-Reward Ratio, or the Return-Risk ratio to calculate the possible gain per dollar invested.
Dalio has said that Bitcoin and gold could be a good store of value if the US dollar’s value drops against other currencies due to money printing.
Study the history of the British Pound, the Dutch Guilder and this to find out that gold was a good diversifier in these periods.
If you didn’t have a view on the market, then you should put 15% of your portfolio in this account as an insurance against one. This is a good guide .”
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The post Billionaire Ray Dalio says 15% of portfolio in gold or Bitcoin (BTC), is necessary for the upcoming money devaluation phase may be updated as new information becomes available.
