Ray Dalio Shifts Portfolio from SPY to Gold and Alibaba, Signaling Caution on U.S. Equities

Billionaire investor Ray Dalio has made a significant pivot in Bridgewater Associates'' portfolio, slashing its SPDR S&P 500 ETF (SPY) holdings by more than half in Q1 2025. The move reflects a defensive stance amid rising market volatility and renewed tariff tensions under the TRUMP administration. SPY now represents just 8.6% of Bridgewater''s portfolio, down sharply from previous levels.

Dalio''s reallocation favors Gold and Chinese tech stocks, particularly Alibaba, underscoring a strategic shift away from passive U.S. index exposure. The timing proved prescient—Bridgewater''s SPY reduction preceded a market dip triggered by the announcement of new "Liberation Day tariffs." While SPY remains Bridgewater''s largest single holding by weight, the dramatic cut signals growing skepticism about near-term U.S. equity performance.

The gold accumulation aligns with Dalio''s long-standing view of the metal as a hedge against inflation and geopolitical risk. His increased China exposure suggests contrarian positioning in a market many global investors have abandoned. This isn''t panic selling but calculated portfolio surgery from an investor who famously warned "cash is trash" during previous monetary expansions.