Ray Dalio says US markets risk ‘heart attack,’ pushes gold

Famed investor Ray Dalio said American markets are heading for a financial “heart attack” — and gold may be the best medicine.

Speaking at a panel for Abu Dhabi Finance Week, the Bridgewater Associates founder warned that surging US debt costs are clogging the economy the way plaque builds up in arteries.

“A doctor would warn of a heart attack,” he said.

Dalio argued that investors should hold 10% to 15% of their portfolios in gold, which he described as uniquely uncorrelated with other assets.

“Gold tends to rise in crises when other assets fall,” Dalio said.

Dalio’s comments come as the precious metal trades near record highs, with spot gold at $3,641.10 per ounce on Thursday morning, up nearly 40% year-to-date.

Gold futures opened at $3,680.60 an ounce, putting the commodity on track for its strongest annual gain in decades.

Dalio has long been one of Wall Street’s most prominent gold evangelists.

In 2019, he urged investors to “buy gold” to hedge against global risks, writing in a LinkedIn essay that the world was entering a “paradigm shift” of money printing and debt accumulation.

In 2020, during the COVID-19 crash, Dalio said central bank policies would debase currencies and drive investors toward gold.

He repeated the call in 2021, telling CNBC that gold was essential insurance in an era of “crazy” money supply growth and geopolitical strains.

Even after stepping down from Bridgewater, the world’s largest hedge fund, in 2022 and selling his remaining stake this summer, Dalio has stuck to the theme.

On Wednesday, Dalio said that as Washington borrows more heavily to fund government operations, the cost of servicing debt “squeezes out other spending” just as clogged arteries restrict blood flow.

“Whose money do you own?” he asked the audience, warning that investors need to reassess the safety of their holdings in a world “abundant in debt” and rife with political risk.

Dalio’s fellow panelist, Standard Chartered CEO Bill Winters, echoed the concern, saying Europe faces similar debt-driven constraints.

“The UK and France are in similar situations but markets have been providing more severe constraints than the US,” Winters said.

Despite those warnings, Wall Street indexes keep climbing. The S&P 500 is up 11% this year, while the Nasdaq has risen 13%, both closing at record highs on Wednesday after softer-than-expected inflation data boosted hopes of a Federal Reserve rate cut next week.

Europe’s STOXX index is up just over 8% in 2025.

Gold’s surge, however, suggests investors are already looking past equities to hedge their bets. Analysts say demand is being driven by expectations of easier Fed policy, geopolitical flashpoints from Ukraine to Taiwan, and concerns about US fiscal sustainability.

Central banks themselves have been heavy buyers, diversifying reserves away from the dollar. China, India and Russia all boosted their gold holdings this year, according to IMF data.

In 2008, gold jumped more than 5% even as the S&P 500 plunged nearly 40%. In 2020, bullion soared above $2,000 an ounce at the height of the pandemic panic. Now, with prices pressing $3,700, Dalio argues gold remains the ultimate insurance policy.