Ray Dalio leaves Bridgewater after debt warning, backing BTC

Billionaire Ray Dalio, who founded Bridgewater Associates 50 years ago, has bid farewell to the hedge fund company he co-founded.

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

Bridgewater issued shares in exchange for Dalio’s stock to Brunei’s sovereign wealth fund in a deal worth billions of dollars, giving it a 20% stake in Dalio.

Dalio said to X Thursday that he’s thrilled to hand Bridgewater down to the future generation. “I love seeing Bridgewater alive and well without me — even better than alive and well with me.”

Dalio predicts “worse than a recession” Coming Soon

Dalio’s Bridgewater Sale marks the end of Dalio’s journey with the company, which he established in a 1975 two-bedroom flat. Dalio, 75 years old, resigned as Bridgewater’s CEO in 2017, and he stepped down from his chairmanship before the end 2021.

Dalio, who is well-known for accurately predicting 2008’s economic crisis, has forecast further collapses on numerous occasions. predicting a global debt crisis By the end of 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,” In a post on X last Wednesday, the investor said:

The US economy could also face an economic crisis, he said. “economic heart attack” if the government doesn’t reduce the budget surplus to 3%.

Dalio updates his allocation advice on Bitcoin and gold

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

Late in July, he advised investors allocate up to 15% into Bitcoin or gold Optimize for your business “best return-to-risk ratio,” Increase your income by a significant amount previous advice of 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 Bitcoins, legendary investor said that gold was his preferred investment.

Dalio’s dark outlook is criticized

Dalio’s economic predictions have been criticized, even though he has earned the reputation as a “market oracle” after correctly predicting the crisis of 2008.

In 1982, Dalio predicted Bridgewater lost a lot of money when Dalio said that the world economy was heading toward depression. 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’s warning that the US could be the next nation to collapse has skeptics on the rise. highlight His economic predictions have many faults, including overgeneralizations, confirmation bias, and a lack of clarity in time.