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Billionaire investor Ray Dalio is sounding the alarm, saying the U.S. economy\u2019s headed toward an \u201ceconomic heart attack.\u201d<\/p>\n
In a June post on X to promote his new book, How Countries Go Broke: The Big Cycle, Dalio gave a stark diagnosis of America\u2019s financial health (1).<\/p>\n
Dalio compared the economy to the human circulatory system, with credit being the lifeblood fueling productivity and growth. Credit builds something productive, generating some form of income, efficiency or growth, he argued.<\/p>\n
But over time, when that borrowing doesn\u2019t generate enough return, it becomes debt that sticks around. And as that builds up irresponsibly, it turns into plaque, clogging the arteries.<\/p>\n
Dalio says that America\u2019s debt has reached levels that threaten to choke off blood flow. He explains that while governments can print money and raise taxes, these tools come with consequences: devalued currency, rising inflation and squeezed public spending.<\/p>\n
\u201cAll these things lead toward a government debt crisis which produces the equivalent of an economic heart attack,\u201d he warned.<\/p>\n
Dalio compared the current economic situation with that of 1929 (2), the year of the \u2018Great Crash\u2019 on Wall Street. In Dalio\u2019s words, \u201cThe parallels between that era and now are striking.\u201d<\/p>\n
So what can savvy investors do to avoid this impending economic doom? Well, a lack of confidence in the traditional banking system can potentially boost the value of alternative assets considered insulated from the market. Here are Dalio\u2019s recommendations for two relatively shockproof assets.<\/p>\n
The billionaire feels strongly about gold because it tends to do well in tumultuous times.<\/p>\n
Dalio\u2019s post on X this June also noted that America\u2019s economic problem isn\u2019t unique. Other countries like Japan, the U.K. and China all have similar debt and deficit problems: \u201cI expect a similar debt and currency devaluation adjustment process in most countries, which is why I expect non-government-produced monies like gold and bitcoin to do relatively well.\u201d<\/p>\n
Since gold can\u2019t be printed, and it isn\u2019t tied to a single country, currency or economy, it can provide a safer alternative investment strategy during challenging times. Gold has surged approximately 60% over the past year and skyrocketed by more than 750% in the last 20 years as of December 15 (3).<\/p>\n
\u201cHaving a small percentage of one\u2019s money in gold can reduce the portfolio\u2019s risk, and I think it will also raise its return,\u201d Dalio wrote on X.<\/p>\n
Read more: Warren Buffett used 8 solid, repeatable money rules to turn $9,800 into a $150B fortune. Start using them today to get rich (and stay rich)<\/a>\u2019<\/p>\n One method that many people use to invest in gold is a self-directed gold IRA<\/a>.<\/p>\n A gold IRA allows you to invest in gold and other precious metals in physical forms while also providing the significant tax advantages of an IRA.<\/p>\n If you\u2019re not sure where to start, you can check out some of Moneywise\u2019s top picks for gold IRAs<\/a> to compare your options for free. Just keep in mind that gold is often best used as one part of a well-diversified portfolio.<\/p>\n Dalio concluded that same X post by answering a pressing question for many: how should investors navigate financial risk going forward?<\/p>\n \u201cEveryone\u2019s financial situation is different, but as general advice, I suggest diversifying well in asset classes and countries that have strong income statements and balance sheets and are not having great internal political and external geopolitical conflicts, underweighting debt assets like bonds, and overweighting gold and a bit of bitcoin.\u201d<\/p>\n Cryptocurrencies like Bitcoin are another asset that, like gold, avoids being tied to any specific country or currency, which can make them helpful in diversifying your portfolio during globally stressful times.<\/p>\n But not all cryptocurrencies are created equally. For instance, bitcoin \u2014 the world\u2019s largest cryptocurrency \u2014 struck a new all-time high of $126,000 per coin in October. Yet, as of December 15, bitcoin\u2019s price has tumbled 30% from its record high, now falling below $86,500 (4).<\/p>\n According to an article in Barron\u2019s (5), this may have to do with Federal Reserve Chair Jerome Powell, and his remarks that the central bank might not cut rates as much, if at all, in 2026. Should that turn out to be true, Barron\u2019s suggests Bitcoin could suffer due to its high risk.<\/p>\n Bitcoin is an inherently risky asset, and anyone investing should be prepared for a more volatile ride than one would expect with the stock market.<\/p>\n If you\u2019re looking to get into the crypto market, one popular option is Robinhood Crypto<\/a>. The platform allows users to buy and sell crypto with as little as $1, giving you the flexibility to start with small amounts before deciding whether crypto is right for you.<\/p>\n Even better, Robinhood<\/a> has the lowest trading cost on average in the U.S. \u2014 meaning you could get up to 2.6% more crypto<\/a> compared to trading on other platforms.<\/p>\n Gold and bitcoin fall under Dalio\u2019s investment preference for uncorrelated assets. In a social media video (6), Dalio shared that his \u201cHoly Grail of investing\u201d is to \u201cfind 10 to 15 good, uncorrelated return streams.\u201d<\/p>\n By investing in assets with returns that don\u2019t depend on one another, you can help keep your risk levels low.<\/p>\n \u201cIf you find several return streams, a number of investments that are good and uncorrelated, you will have the average return of those, so you don’t lessen your return,\u201d he said.<\/p>\n Fine art can be a powerful addition to a diversified investment strategy. Like gold or crypto, it isn\u2019t tied to any single currency or country \u2014 making it a potentially valuable hedge for uncertain times.<\/p>\n Post-war and contemporary art outpaced the S&P 500 by 15% from 1995 to 2025 while showing near-zero correlation to traditional equities.<\/p>\n Until recently, this world was off-limits. Now, with Masterworks<\/a>, you can buy fractional shares in multimillion-dollar works by icons like Banksy, Picasso and Basquiat. While art can be illiquid and typically requires a long-term hold, it offers unique portfolio diversification.<\/p>\n Masterworks has sold 25 artworks so far, yielding net annualized returns like 14.6%, 17.6%, and 17.8%.*<\/p>\n Moneywise readers can get priority access to diversify with art: Skip the waitlist here<\/a><\/p>\n *Past performance is not indicative of future returns. Investing involves risk. See important Regulation A disclosures at [Masterworks.com\/cd<\/a><\/p>\n While Dalio\u2019s suggestions might be helpful, it\u2019s always a good idea to speak with a financial advisor before making any big investment decisions.<\/p>\n A skilled advisor can help determine the right asset mix for your portfolio depending on your risk tolerance, investing timeline and financial goals.<\/p>\n Research from Vanguard suggests that working with a financial advisor can add about 3% to net returns over time.<\/p>\n If you\u2019re not sure where to find a qualified advisor, Advisor.com<\/a> can help match you with an advisor who can meet your particular needs. The platform\u2019s advisors are also fiduciaries, meaning they\u2019re legally obligated to act in your best interests.<\/p>\n From there, you can book a no-obligation call<\/a> to see if they\u2019re the right fit for you.<\/p>\n We rely only on vetted sources and credible third-party reporting. For details, see our editorial ethics and guidelines<\/a>.<\/p>\n @RayDalio\/X (1<\/a>), (2<\/a>), (6<\/a>); GoldPrice.org<\/a> (3<\/a>); Yahoo Finance (4<\/a>); Barron\u2019s (5<\/a>); raydalio\/Instagram (6<\/a>)<\/p>\n This article provides information only and should not be construed as advice. It is provided without warranty of any kind.<\/p>\n