Ray Dalio Says Gold Should Be in Your Portfolio

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00:00When you're thinking, you're doing your asset allocation, what is going to protect your real after-tax returns so you create that optimal mix?

00:09Gold is a very excellent diversifier of the portfolio.

00:13So if you were to look at, just from the strategic asset allocation mix perspective,

00:19you would probably have something like, as the optimal mix, something like 15% of your portfolio in gold

00:26because of the fact that, if you didn't even have a tactical,

00:32because it is the one asset that does very well when the typical parts of your portfolio go down

00:38because the typical parts of your portfolio are also so credit dependent.

00:44So anyway, I think all of this means that there should be some piece in that of gold.

00:50If I'm making tactical bets, I don't like debt assets per se.

00:56And I would say I don't like debt assets per se, not just government debt assets,

01:01but also if you're looking, let's say, at credit or private credit and look at where the credit spreads are.

01:06Credit spreads are very, very low.

01:09And so for those various reasons, my tilts would be away from those things.

01:15And toward gold?

01:16But again, yes.

01:18So more than would be a normal asset allocation mix.

01:21But I think you have to also say, you know, start with what is a real dollar,

01:29if you're a dollar investor, a real return asset that you're going to hold as part of that portfolio.

01:36Most of the system is dependent on credit.

01:40Equities and everything is dependent on credit.

01:42You change credit and, you know, then all sorts of things happen.

01:45And so it's an effective diversifier as well as probably the timing seems good.