Ray Dalio wants investors to have 15% of their portfolios in gold. Here’s what others think of his advice.

Gold Allocation Gains Attention: What Ray Dalio’s 15% Portfolio Recommendation Means for Investors

Imagine your savings are like a garden. You want to plant different kinds of seeds so if one type doesn’t grow well, the others will still give you food. That’s why investors talk about adding gold to their portfolios—it’s like planting a different seed that grows when others might not.

Why Gold Is in the Spotlight

Ray Dalio, a famous billionaire investor and founder of Bridgewater Associates, recently said at the Greenwich Economic Forum that gold is looking a lot like it did in the 1970s. Back then, the economy was shaky, and many people turned to gold to protect their money.

Dalio thinks people should have up to 15% of their investments in gold, especially when there’s a lot of debt floating around and traditional places to put your money, like bonds, might not be safe. Gold is often seen as a shield against inflation and economic storms.

Bull Case: Why Some Experts Like Gold

  • Protection Against Inflation: When prices go up and money loses value, gold has often held its worth. For example, during the 1970s, gold prices soared as inflation rose (Investopedia).
  • Safe During Uncertainty: If stocks and bonds are having a rough time, gold sometimes does better because people see it as a safe place to park their money.
  • Recent Highs: Gold has recently hit record prices, making headlines and catching investors’ attention.

Bear Case: Why Others Are Cautious

  • No Income: Unlike stocks or bonds, gold doesn’t pay dividends or interest. It just sits there, so you only make money if its price goes up.
  • Expert Advice: Many financial planners think 15% in gold is too high. Most suggest keeping it below 10%, and some even say just 2%–4% is enough.
  • Long-Term Growth: Historically, stocks and bonds have grown more over long periods, while gold can be more unpredictable.
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What Other Experts Say

Clifford Cornell, a financial planner, says that gold is popular right now, but warns not to rush in just because everyone else is. He thinks 15% is a big chunk for most people.

Edward Hadad, another planner, prefers investments that can grow and pay you money, like stocks and bonds. He usually tells clients not to put more than 5% of their portfolio in gold.

Big firms like BlackRock and Fidelity also recommend a small slice—usually 2% to 4%—of gold in a balanced portfolio.

According to a study by the World Gold Council, gold has averaged about a 10% yearly return during periods of high inflation, but over the very long run, stocks have still outperformed (World Gold Council).

Investor Takeaway

  • Don’t put all your eggs in one basket. Gold can help balance your investments, but most experts suggest keeping gold to a small part of your portfolio.
  • Think about your own goals and risk level. If you want steady income, stocks and bonds may be better than gold.
  • Be careful of “FOMO” (fear of missing out). Just because gold is hot now doesn’t mean it will always shine.
  • Review your mix of investments regularly. It’s a good idea to check if your garden of investments is growing the way you want.
  • Learn from history. Gold has protected against inflation before, but stocks have usually done better over the long haul.

For the full original report, see Yahoo Finance

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