Ray Dalio says today is like the early 1970s and investors should hold more gold than usual

Core Viewpoint - Investors should consider allocating up to 15% of their portfolios to gold as it serves as an effective diversifier and performs well when traditional assets decline [1][4]. Group 1: Gold Market Insights - Gold futures are currently trading at $4,005.80 per ounce, having increased over 50% this year due to a flight to safety amid rising fiscal deficits and global tensions [2]. - The current market environment is likened to the early 1970s, characterized by inflation, heavy government spending, and high debt, which undermined confidence in paper assets and fiat currencies [2][3]. Group 2: Investment Strategies - Ray Dalio's recommendation of a 15% allocation to gold contrasts with the traditional 60-40 stock-bond portfolio strategy typically advised by financial advisors, who usually suggest a low single-digit percentage for alternative assets like gold [3]. - Jeffrey Gundlach, CEO of DoubleLine Capital, has suggested an even higher allocation of up to 25% in gold, citing ongoing inflationary pressures and a weaker dollar as key factors [4]. Group 3: Gold as a Hedge - Gold is highlighted as a unique asset that does not require reliance on others for value, making it a strong hedge against monetary debasement and geopolitical uncertainty [4].