Ray Dalio Leaves Bridgewater Following Debt Warning and Supporting BTC

The billionaire investor Ray Dalio said goodbye to Bridgewater Associates – the hedge fund giant that he cofounded 50 years ago.

The Wall Street Journal reports that Dalio sold the last of his Bridgewater shares and has resigned from its board. reported This Thursday.

Bridgewater, after buying Dalio’s shares from the private equity firm, issued new shares to Brunei’s sovereign fund. The multi-billion dollar deal gave it nearly 20% of the company.

Dalio said to X Thursday that he’s thrilled about passing Bridgewater along to the next generations, adding: “I love seeing Bridgewater alive and well without me — even better than alive and well with me.”

Dalio predicts “worse than a recession” Come and see us!

Dalio’s Bridgewater Sale marks the end of Dalio’s journey with the company, which he established in 1975 from a modest two-bedroom apartment. Dalio, 75 years old, stepped down from his role as Bridgewater’s CEO in 2017, and resigned as its chairman at the end of 2020.

Dalio is known for correctly predicting the economic collapse of 2008, but he has predicted more innumerable crashes. predicting a global debt crisis In late 2024.

“When a country is overloaded with debt, the preferred path is to lower rates and devalue the currency, so it is worth betting that this is exactly what will happen,” The veteran investor stated in an X-post last Wednesday.

The US economy could also face an economic crisis, he said. “economic heart attack” If the government fails to reduce the deficit budget at 3% GDP.

Dalio increases allocation advice for Bitcoin, gold

Expecting more economic challenges amid deglobalization Dalio, who has recommended Bitcoin repeatedly, said that the Trump tariff disruptions have exacerbated unsustainable trade imbalances.BTCThe gold and silver as the main tools of hedge against crisis.

He recommended that investors invest in late July allocate up to 15% into Bitcoin or gold Optimize your website “best return-to-risk ratio,” Raising his eyebrows is a great way to increase your income. previous advice to invest just up to 2%.

Related: Bulgaria missed $25B debt payoff by selling Bitcoin in 2018

  “I believe Bitcoin is one hell of an invention,” Dalio wrote in his essay “What I Think of Bitcoin” In 2021, he stated the following:

“Bitcoin looks like a long-duration option on a highly unknown future that I could put an amount of money in that I wouldn’t mind losing about 80% of.”

Even though he admitted to owning some Bitcoin, legendary investor said that he preferred gold over Bitcoin.

Dalio criticised for his grim outlook

Dalio gained a reputation for being a great market oracle by predicting 2008’s financial crisis. But many of his economic forecasts were criticized.

In 1982, Dalio predicted Bridgewater suffered massive losses after Dalio claimed that global economic conditions were heading towards a recession. This turned out to be a false prediction. Dalio admitted later that he had been mistaken. “dead wrong” In both his predictions and trading strategies that followed, it was revealed that his bad judgment nearly bankrupted a firm.

Dalio has warned that the US might be the country next to go bankrupt. Skeptics are becoming more vocal. highlight His economic predictions have many faults, including overgeneralizations, confirmation bias, and lack of clarity in time.