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Ray Dalio, founder of the world’s largest hedge fund, Bridgewater Associates, has a stark warning for Americans.
“For those who care about the value of their money, the risks for U.S. government debt are greater than the rating agencies are conveying,” he wrote in an alarming post on X in May.
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Dalio was referring to the recent downgrade of the U.S. sovereign credit rating by Moody’s, following similar moves by S&P Global in 2011 and Fitch in 2023.
While these downgrades have made headlines, Dalio cautions that the real threat runs deeper than the government’s ability to repay its debt obligations.
“[Regarding] the U.S. debt downgrade, you should know that credit ratings understate credit risks because they only rate the risk of the government not paying its debt,” he explained. “They don’t include the greater risk that the countries in debt will print money to pay their debts thus causing holders of the bonds to suffer losses from the decreased value of the money they’re getting (rather than from the decreased quantity of money they’re getting).”
Simply put, if the government resorts to printing more dollars, the currency itself loses real value — something Americans have experienced firsthand.
The U.S. Dollar Index fell 10.8% in the first half of 2025 — marking its worst performance since 1973, when Richard Nixon was president. Meanwhile, inflation has steadily chipped away at the dollar’s purchasing power. According to the Federal Reserve Bank of Minneapolis inflation calculator, $100 in 2025 buys what just $12.56 could in 1971 — the year the U.S. moved off the gold standard.
If you share Dalio’s concerns and care about protecting the value of your money, here’s a look at a few ways to hedge against these risks.
A safe haven shines again
Gold has helped people preserve their wealth for thousands of years. Today, its appeal is simple: Unlike fiat currencies, the yellow metal can’t be printed at will by central banks or governments.
It’s also widely regarded as the ultimate safe haven. Gold is not tied to any one country, currency or economy, and in times of economic turmoil or geopolitical uncertainty, investors often flock to it — driving prices higher.
Dalio has repeatedly emphasized gold’s importance in a resilient portfolio.
“People don’t have, typically, an adequate amount of gold in their portfolio,” he told CNBC earlier this year. “When bad times come, gold is a very effective diversifier.”
Over the past 12 months, the price of the precious metal has surged by roughly 40%.
One way to invest in gold that also provides significant tax advantages is to open a gold IRA with the help of Thor Metals.
Gold IRAs allow investors to hold physical gold or gold-related assets within a retirement account, which combines the tax advantages of an IRA with the protective benefits of investing in gold, making it an attractive option for those looking to potentially hedge their retirement funds against economic uncertainties.
To learn more, you can get a free information guide that includes details on how to get up to $20,000 in free metals on qualifying purchases.
A time-tested income play
Gold isn’t the only asset investors rely on to preserve their purchasing power. Real estate has also proven to be a powerful hedge.
When inflation rises, property values often increase as well, reflecting the higher costs of materials, labor and land. At the same time, rental income tends to go up, providing landlords with a revenue stream that adjusts for inflation.
Over the past five years, the S&P CoreLogic Case-Shiller U.S. National Home Price NSA Index has jumped by more than 50%, reflecting strong demand and limited housing supply.
Of course, high home prices can make buying a home more challenging, especially with mortgage rates still elevated. And being a landlord isn’t exactly hands-off work — managing tenants, maintenance and repairs can quickly eat into your time (and returns).
The good news? You don’t need to buy a property outright — or deal with leaky faucets — to invest in real estate today. Crowdfunding platforms like Arrived offer an easier way to get exposure to this income-generating asset class.
Backed by world class investors like Jeff Bezos, Arrived allows you to invest in shares of rental homes with as little as $100, all without the hassle of mowing lawns, fixing leaky faucets or handling difficult tenants.
The process is simple: Browse a curated selection of homes that have been vetted for their appreciation and income potential. Once you find a property you like, select the number of shares you’d like to purchase, and then sit back as you start receiving positive rental income distributions from your investment.
Another option is Homeshares, which gives accredited investors access to the $35 trillion U.S. home equity market — a space that’s historically been the exclusive playground of institutional investors.
With a minimum investment of $25,000, investors can gain direct exposure to hundreds of owner-occupied homes in top U.S. cities through their U.S. Home Equity Fund — without the headaches of buying, owning or managing property.
With risk-adjusted target returns ranging from 14% to 17%, this approach provides an effective, hands-off way to invest in owner-occupied residential properties across regional markets.
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
A finer alternative
It’s easy to see why great works of art tend to appreciate over time. Supply is limited and many famous pieces have already been snatched up by museums and collectors. Art also has a low correlation with stocks and bonds, which helps with diversification.
In 2022, a collection of art owned by the late Microsoft co-founder Paul Allen sold for $1.5 billion at Christie’s New York, making it the most valuable collection in auction history.
Investing in art was traditionally a privilege reserved for the ultra-wealthy.
Now, that’s changed with Masterworks — a platform for investing in shares of blue-chip artwork by renowned artists, including Pablo Picasso, Jean-Michel Basquiat and Banksy. It’s easy to use, and with 23 successful exits to date, every one of them has been profitable thus far.
Simply browse their impressive portfolio of paintings and choose how many shares you’d like to buy. Masterworks will handle all the details, making high-end art investments both accessible and effortless.
In total, the platform has distributed roughly $61 million back to investors. New offerings have sold out in minutes, but you can skip their waitlist here.
At the end of the day, everyone’s financial situation is different — from income levels and investment goals to debt obligations and risk tolerance. If you’re unsure where to start, it might be the right time to get in touch with a financial advisor through Advisor.com.
Advisor.com is an online platform that matches you with vetted financial advisors suited to your unique needs. They can help tailor a strategy to your unique financial situation, whether you’re looking to grow wealth, diversify beyond stocks or plan for long-term financial security.
Once you’re matched with an advisor, you can book a free consultation with no obligation to hire.
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This article provides information only and should not be construed as advice. It is provided without warranty of any kind.
