Core Viewpoint - Billionaire Ray Dalio emphasizes that gold is a safer investment compared to the US dollar, drawing parallels to its performance during the 1970s amid high inflation and economic instability [1][4]. Investment Strategy - Dalio suggests that gold should constitute approximately 15% of an investment portfolio, highlighting its role as an excellent diversifier [3][4]. - The price of gold has increased by over 20% since the end of July, reaching around $4,000 an ounce, influenced by factors such as government shutdown speculation and potential Federal Reserve interest rate cuts [3]. Economic Context - Dalio points out that rising government debt, geopolitical tensions, and diminishing confidence in national currencies contribute to gold's appeal as a store of value [4]. - The US dollar has weakened against major currencies this year, experiencing its largest decline since the 1970s, following uncertainties related to President Donald Trump's policies [3]. Market Observations - Dalio expresses concerns about the recent surge in stock market valuations, likening it to a potential artificial intelligence bubble, reminiscent of past speculative excesses [5][6]. - Despite reservations about stock valuations, Dalio sees opportunities in companies leveraging AI for efficiency or providing platforms for the technology [7].