Billionaire Ray Dalio builds perfect portfolio for market crisis

Billionaire investor Ray Dalio, the founder of Bridgewater Associates, has outlined what he considers a resilient portfolio structure designed to withstand periods of market stress.

According to Dalio, such a portfolio should emphasize diversification, disciplined positioning, and a meaningful allocation to gold alongside exposure to technological innovation, he said in an interview with CNBC on January 20. 

Dalio said that for investors with no strong directional views on markets, the starting point should be a strategically diversified asset mix in which different assets offset one another during adverse conditions.

Within such a neutral allocation, he argued that gold should typically account for roughly 5% to 15% of a portfolio, depending on circumstances, because of its effectiveness as a diversifier when traditional assets struggle. 

“Gold should represent between 5% and 15% of a normal portfolio, because it does vary. Well, when the other assets don’t do well, it’s an effective diversifier. If you had no views of the markets, that’s what you would have,” Dalio said. 

He added that central banks, in his view, should hold a higher share of gold than they currently do. This adds to his long-standing support for gold, which continues to trade at new record highs and is now targeting the $5,000 mark.

Dalio’s tactical shift 

From a neutral baseline, Dalio said investors can make modest tactical shifts. He has long favored trimming bond exposure while holding more gold than usual, citing macroeconomic risks. 

Despite gold’s recent rally, he noted that many large institutions remain underexposed, reinforcing its role as portfolio protection rather than a short-term trade.

He also warned against excessive trading, urging investors to focus on proper diversification instead of market timing, with an emphasis on holding assets that perform differently across economic conditions.

Beyond defensive positioning, Dalio highlighted the importance of exposure to a major technological revolution, with investments not only in large technology firms but also in companies adopting and applying new technologies across the broader economy.

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