Ray Dalio: Gold Will Appeal During Global Market “Paradigm Shift”

Billionaire investor Ray Dalio believes that the push by central banks toward policies that devalue currencies is about to cause a shift in investing toward assets such as gold. This according to a recentCNBC article.

In a recent LinkedIn post, the article reports that Dalio explained, “For this reason, I believe that it would be both risk-reducing and return-enhancing to consider adding gold to one’s portfolio.” The article points out that his note comes two weeks before the Fed is expected to once again cut interest rates by at least a quarter point.

In his post, Dalio argued that investors are heavily weighted in stocks and other assets that have equity-like returns. Consequently, he said, they will face diminishing returns and will need to change their mindset about what will work going forward.

“In paradigm shifts,” Dalio wrote, “most people get caught overextended doing something overly popular and get really hurt. On the other hand, if you’re astute enough to understand these shifts, you can navigate them well or at least protect yourself against them.”