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Billionaire investor Ray Dalio has sounded the alarm that the U.S. economy is headed for an “economic heart attack.”
In a June X post promoting his new book, How Countries Go Bankrupt: The Big CycleDalio delivers a grim diagnosis of America’s financial health(1).
Dalio compared the economy to the human circulatory system, with credit being the lifeblood that drives productivity and growth. He believed that credit could create productivity and produce some form of income, efficiency or growth.
But over time, when borrowing doesn’t generate enough returns, it becomes an ongoing debt. When it accumulates irresponsibly, it turns into plaque, clogging arteries.
Dalio said U.S. debt has reached levels that could impede blood flow. He explained that while governments can print money and raise taxes, these tools come with consequences: currency devaluation, rising inflation and a squeeze on public spending.
“All of this can lead to a government debt crisis with consequences equivalent to an economic heart attack,” he warned.
Dalio compared the current economic situation to 1929 (2), the year of Wall Street’s “Great Crash.” In Dario’s words, “The parallels between that time and now are striking.”
So what can savvy investors do to avoid impending economic doom? Well, a lack of confidence in the traditional banking system may increase the value of alternative assets that are considered insulated from the market. Here are Dalio’s recommendations for two relatively shock-proof assets.
The billionaire has strong feelings about gold because it tends to perform well during turbulent times.
Dalio’s post on X in June this year also pointed out that the United States’ economic problems are not unique. Other countries such as Japan, the UK and China 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 currencies like gold and Bitcoin to perform relatively well.”
Because gold cannot be printed and is not tied to a single country, currency or economy, it can provide a safer alternative investment strategy during challenging times. Gold has soared approximately 60% in the past year and more than 750% in the past 20 years through December 15th(3).
“Investing a small portion of your capital in gold reduces a portfolio’s risk, and I think also improves its returns,” Dalio wrote on X .
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One method many people use to invest in gold is a self-directed gold IRA.
A gold IRA allows you to invest in gold and other precious metals in physical form while also providing the significant tax advantages of an IRA.
If you’re not sure where to start, you can check out some of Moneywise’s top picks for gold IRAs to compare your options for free. Keep in mind that gold is generally best used as part of a diversified portfolio.
In the same X post, Dalio answered a pressing question facing many: How should investors prepare for future financial risks?
“Everyone’s financial situation is different, but as a general recommendation, I would recommend diversifying across asset classes and countries that have strong P&Ls and balance sheets and are free of major internal politics and external geopolitical conflicts, underweight debt assets like bonds, and overweight gold and some Bitcoin.”
Cryptocurrencies such as Bitcoin are another asset that, like gold, avoid being tied to any specific country or currency, which can help diversify your portfolio during times of global stress.
But not all cryptocurrencies are created equally. For example, Bitcoin, the world’s largest cryptocurrency, hit an all-time high of $126,000 per coin in October. However, as of December 15, the price of Bitcoin has fallen 30% from its all-time high and is currently below $86,500 (4).
According to an article in Barron’s (5), this may have something to do with Federal Reserve Chairman Jerome Powell, who said the central bank may not cut interest rates that much, if at all, in 2026. If that turns out to be the case, Barron’s said Bitcoin could suffer losses due to its high risk profile.
Bitcoin is an inherently risky asset, and any investor should be prepared for greater-than-expected volatility in the stock market.
If you want to get into the cryptocurrency market, a popular option is Robinhood Crypto. The platform allows users to buy and sell cryptocurrencies for as little as $1, giving you the flexibility to start small before deciding if cryptocurrencies are right for you.
Even better, Robinhood has the lowest average trading costs in the United States, which means you can get up to 2.6% off your crypto compared to trading on other platforms.
Gold and Bitcoin are among Dalio’s investment preferences for uncorrelated assets. In a social media video(6), Dalio shared that his “holy grail of investing” is to “find 10 to 15 good, uncorrelated return streams.”
By investing in assets whose returns are independent of each other, you can help keep your risk levels low.
“If you find several return streams, some good and uncorrelated investments, you’re going to get the average return of those, so you don’t reduce your returns,” he said.
Fine art can be a powerful complement to a diversified investment strategy. Like gold or cryptocurrencies, it is not tied to any single currency or country, making it a potentially valuable hedge in uncertain times.
From 1995 to 2025, postwar and contemporary art outperformed the S&P 500 by 15% while exhibiting almost zero correlation to traditional stocks.
Until recently, this world was off limits. Now, with Masterworks, you can buy a stake in multi-million dollar works by icons like Banksy, Picasso and Basquiat. While art can be illiquid and often requires long-term holding, it provides unique portfolio diversification.
To date, Masterworks has sold 25 pieces of art, with annualized net returns of 14.6%, 17.6% and 17.8%. *
Moneywise readers get priority access to Arts Diversity: Skip the waitlist here
*Past performance is not indicative of future returns. Investing involves risks. Please see important Regulation A disclosures at[Masterworkscom/cd[Masterworkscom/cd[Masterworkscom/cd[Masterworkscom/cd
While Dalio’s advice may be helpful, it’s always a good idea to talk to a financial advisor before making any major investment decisions.
An experienced advisor can help you determine the right mix of assets for your portfolio based on your risk tolerance, investment timeline, and financial goals.
Research from Vanguard shows that working with a financial advisor can increase net returns by about 3% over time.
If you’re not sure where to find a qualified advisor, Advisor.com can help match you with one who can meet your specific needs. The platform’s advisors are also fiduciaries, which means they have a legal obligation to act in your best interests.
From there, you can schedule a free call to see if they’re a good fit for you.
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