Billionaire Urges Everyone to “Relook” at Gold

Ray Dalio sees risk in all the wrong places.

Geopolitical risks are rising, and everyone needs to consider an allocation to gold.

That’s according to a Bridgewater Associates note to clients released on Wednesday, penned by founder Ray Dalio and staffers Bob Elliott, Steven Kryger, and Neil Hannan. A copy of the note was reviewed by Business Insider.

Bridgewater, based in Bridgeport, Connecticut, is the world’s largest hedge fund firm, managing about $160 billion firmwide across strategies.

The firm has been losing money of late, and is down -2.8% after fees this year through July in its flagship Pure Alpha II fund, according to a client document reviewed by Business Insider. Bridgewater’s Pure Alpha fund fell -1.6% over the same period, meanwhile.

Here’s an excerpt from Bridgewater’s letter (emphasis added):

“Most immediately, during the calm of the August vacation season, we are seeing 1) two confrontational, nationalistic and militaristic leaders playing chicken with each other, while the world is watching to see which one will be caught bluffing, or if there will be a hellacious war, and 2) the odds of Congress failing to raise the debt ceiling (leading to a technical default, a temporary government shutdown, and increased loss of faith in the effectiveness of our political system) rising. It’s hard to bet on such things one way or another, so the best that one can do is be neutral to such possibilities.”

Full story at Business Insider

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