Ray Dalio Says Gold Should Be in Your Portfolio

Core Insights - Gold is identified as an excellent diversifier for investment portfolios, particularly in times when traditional assets may decline in value [1][2][4] - A recommended strategic asset allocation suggests holding approximately 15% of a portfolio in gold, as it tends to perform well when other credit-dependent assets falter [2][3] - The current low credit spreads indicate a shift away from government and private credit assets, favoring gold as a more reliable investment option [3][4] Strategic Asset Allocation - The optimal mix for asset allocation should include a significant portion of gold to protect real after-tax returns [1][2] - Gold serves as a hedge against the volatility of credit-dependent assets, which are prevalent in most investment portfolios [2][4] Market Conditions - The current market environment, characterized by low credit spreads, suggests that traditional credit assets may not provide adequate returns, reinforcing the case for gold [3][4] - The dependence of equities and other assets on credit conditions highlights the importance of diversifying with gold to mitigate risks associated with credit fluctuations [4]