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Billionaire Ray Dalio recently made a shocking comment about the state of the economy, claiming an American “economic heart attack” is nearly inevitable, but his warning also came with some ideas for savvy investors looking to avoid the storm.
In a recent post on the social platform X promoting his latest book, “How Countries Go Broke: The Big Cycle,” he explained his fears surrounding America’s debt, and why he compares the U.S. economy to a person’s circulatory system.
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“The debt dynamics work the same for a government as they do for a person or a company, except that the central government has a central bank that can print money (which devalues it) and it can take money away from people via taxes,” Dalio wrote.
The way Dalio sees it, a country’s debt can build up to a dangerous level the same way plaque can in a person’s arteries.
“To me, the credit/market system is like the circulatory system, bringing nutrients to all parts of the body that make up our markets and economy.”
Dalio makes the point that credit, when used effectively, can create productivity and income, which can pay back the debt and the interest on the debt.
But, like in business, if the debt isn’t used well it doesn’t create enough income to pay for itself. This means debt servicing can build up like plaque in the circulatory system of the American economy, squeezing out other spending.
This can lead to interest rates rising and central banks “printing money,” which lowers the value of the dollar and raises inflation.
“All these things lead toward a government debt crisis which produces the equivalent of an economic heart attack that comes when the constriction of debt-financed spending shuts down the normal flow of the circulatory system,” Dalio wrote.
So what can savvy investors do to avoid this impending economic doom? Dalio recommends focusing on two shockproof assets.
Protect your investment plan with gold
The billionaire feels strongly about gold, because it tends to do well in tumultuous times.
Dalio’s post pointed out that this economic problem isn’t specific to the U.S. Other countries like Japan, the U.K. and China all have similar debt and deficit problems:
“I expect a similar debt and currency devaluation adjustment process in most countries, which is why I expect non-government produced monies like gold and bitcoin to do relatively well.”
Since gold can’t be printed, and it isn’t tied to a single country, currency or economy, it can provide a safe alternative investment strategy during challenging times. In April, the price for an ounce of gold hit a new benchmark of $3,400, up 66% from its listed price in early 2024, according to CBS News.
“Having a small percentage of one’s money in gold can reduce the portfolio’s risk, and I think it will also raise its return,” Dalio wrote.
If you’re interested in investing in gold, Priority Gold is one option for tapping into this alternative asset. They also have an A+ rating from the Better Business Bureau.
Priority Gold allows you to convert an existing IRA into a gold IRA with 100% free rollover, free shipping and free storage for up to five years. Qualifying purchases can also receive up to $10,000 in free silver.
You can download their free 2025 gold investor bundle to learn more. Keep in mind that gold is often best used as a portfolio diversification tool when it’s combined with other alternative assets.
Read more: You don’t have to be a millionaire to gain access to this $1B private real estate fund. In fact, you can get started with as little as $10 — here’s how
Consider complimenting with crypto
Dalio concluded his post on X by answering a pressing question for many: How should investors navigate financial risk going forward?
“Everyone’s financial situation is different, but as general advice, I suggest diversifying well in asset classes and countries that have strong income statements and balance sheets and are not having great internal political and external geopolitical conflicts, underweighting debt assets like bonds, and overweighting gold and a bit of bitcoin.”
Cryptocurrencies like bitcoin are another asset that, like gold, avoids being tied to any specific country or currency, which can make them useful for diversifying your portfolio during globally stressful times.
Bitcoin struck a new all-time high of $112,000 per coin in June, surging 50% from its April low. After Elon Musk replied positively to a post asking if his new America Party would embrace bitcoin, the price continued to rise.
If you’re looking to get into the crypto market, one option is Gemini, which made Forbes’ 2024 top ten of list of the best crypto exchanges.
As a full-reserve and regulated cryptocurrency exchange and custodian where you can buy, sell and store over 70 vetted cryptocurrencies, Gemini lets you choose the coins that suit your confidence level.
New users can even get $15 in free Bitcoin with code GEMINI15 when you trade $100 or more. However, the trade needs to be revenue-generating for Gemini — meaning no stablecoin or withdrawal-deposit shuffling.
But be sure to act fast, as this promotion is only good for 30 days after creating an account.
If you’re not sure yet about actively investing in crypto, you can test the waters by applying for the Gemini credit card. With no annual fees, it allows you to earn crypto on every purchase you make.
As an added bonus, you can also earn $200 in crypto rewards when you spend $3,000 on the Gemini credit card within your first 90 days.
Art investing as an alternative asset
In a YouTube video posted to his channel, Dalio shared that his “Holy Grail of investing” is to “find 10 to 15 good, uncorrelated return streams.”
This strategy helps ensure that risk remains low.
“If you find a number of return streams, a number of investments that are good and uncorrelated, you will have the average return of those so you don’t lessen your return,” he said.
“But at 15, you’ll eliminate 80% of your risk, so you’ll improve your return-to-risk ratio by a factor of five.”
Investing in fine art can be a great addition to any diversification strategy. Just like gold and crypto, it isn’t tied to any specific currency or country.
But while it might be easy for someone like Dalio to invest millions in an original Basquiat, the price point for investing in fine art isn’t accessible for most.
But now, Masterworks is helping investors tap into this diversification strategy by investing in fractional shares of fine art from artists such as Picasso and Banksy.
Masterworks handles the process of finding, purchasing and storing the artwork for you.
To earn a profit, just wait for Masterworks to sell the painting. Typically, it takes between 3 and 10 years to make a sale, although you can sell your shares yourself on the secondary market before then.
From 23 exits so far, Masterworks investors have realized representative annualized net returns like +17.6%, +17.8%, and +21.5% among assets held for longer than one year.
If you’re already comfortable with investing, see if you qualify with Masterworks today and invest like the billionaires do.
See important Regulation A disclosures at Masterworks.com/cd.
But talk to an advisor first
While Dalio’s suggestions might be helpful, it’s usually a good idea to speak with a financial advisor before making any big investment decisions.
A skilled advisor can help determine the right asset mix for your portfolio depending on your risk tolerance, investing timeline and financial goals. People who work with financial advisors tend to experience a 3% increase in net returns, according to a report from Vanguard.
If you’re not sure where to find a qualified advisor, Advisor.com can help match you with an advisor who can meet your particular needs. The platform’s advisors are also fiduciaries, meaning they’re legally obligated to act in your best interests.
From there, you can book a no-obligation call to see if they’re the right fit for you.
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This article provides information only and should not be construed as advice. It is provided without warranty of any kind.
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