Ray Dalio Warns of Stagflation Risks as Dollar Weakens, Eyes Gold as Hedge
Ray Dalio, founder of Bridgewater Associates, warns that the U.S. dollar's depreciation against major currencies may signal incoming stagflation—a toxic mix of high inflation, unemployment, and stagnant growth echoing the 1970s. The trend reflects broader systemic risks as global economies, including Europe, Japan, and China, grapple with unsustainable debt financing and monetary expansion.
Dalio highlights Gold as a strategic hedge amid currency devaluation. While fiat currencies face downward pressure, precious metals could attract capital seeking stability. Investors are urged to diversify beyond traditional assets, though cryptocurrencies remain unmentioned in his analysis.