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The early 1970s were a turbulent time in America — marked by soaring inflation, an oil crisis and a sharp drop in stock prices that left investors scrambling for safe havens.
And, according to billionaire investor Ray Dalio, history may be repeating itself. Surging prices and massive government spending could prompt investors to once again question the value of fiat currencies and the paper assets tied to them.
“It’s very much like the early ’70s … what do you put your money in?” Dalio said at the Greenwich Economic Forum (1). “When you’re holding money, you’re putting it in a debt instrument. And when you have such a supply of debt and debt instruments, it’s not an effective storehold of wealth.”
In fact, Dalio has long warned about the sheer size of America’s national debt, hovering close to $39 trillion and climbing in February 2026 (2). He has described the situation as a potential “debt death spiral” — where the government must borrow just to pay the interest on existing debt. Over time, this process accelerates (3).
If the national debt figure feels abstract, Dalio has a more personal warning.
The asset he’s talking about is something nearly everyone holds in one way or another, whether in bank accounts or under mattresses: the U.S. dollar.
In a post on X, Dalio shared a Q&A he had with the Financial Times (4). When asked what would happen to bonds and the dollar if a politically weakened Federal Reserve were to let inflation run hot, his answer was blunt.
“It would lead bonds and the dollar to go down in value, and if not rectified, would lead to them being an ineffective storehold of wealth and the breaking down of the monetary order as we know it.”
That comment couldn’t have come at a more sensitive time for the Federal Reserve. President Donald Trump has repeatedly attacked Chair of the Federal Reserve Jerome Powell, recently nominating financier Kevin Warsh to replace him. A former inflation hawk, Warsh now favors lower interest rates — aligning with Trump’s aims (5).
The president has also come under fire for attempting to oust Fed governor Lisa Cook, the first time a president has sought to remove a governor in the central bank’s 112-year history. Cook sued to keep her job, and it was ruled she could continue in her post while the Supreme Court deliberates on the case (6).
In the middle of this turbulence, Dalio warned that if investors begin to believe the Fed will artificially hold rates too low, it could trigger “an unhealthy decline in the value of money (4).”
To be sure, that decline may already be underway. The U.S. Dollar Index, which tracks the dollar against a basket of major foreign currencies, tumbled 10.8% in the first half of 2025 — its worst performance since 1973, when Richard Nixon was president (7). And the dollar has continued its decline in 2026, dropping to a four-year low in January (8).
Meanwhile, inflation has chipped away at Americans’ purchasing power. According to the Federal Reserve Bank of Minneapolis, $100 in 2025 bought what just $12.06 could in 1970 — a sobering reminder that the dollar hasn’t been a very effective “storehold of wealth” for decades (9).
Experts are also warning of “stagflation,” a term used to describe an era when GDP growth is moderate, inflation is high and employment rates are taking a hit (10).
Not only that, but at the World Governments Summit in Dubai, Dalio sounded the alarm that the world is on the brink of a “capital war” stemming from ongoing geopolitical tensions (11). In other words, money is being weaponized by various global powers — and investors’ portfolios might be the ones to take a beating.
Fortunately, there’s some good news amid the warnings. Dalio revealed one asset he believes can help safeguard your wealth from what’s coming.
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His answer is simple: gold.
“Gold is a very excellent diversifier of the portfolio,” Dalio said at the Greenwich Economic Forum (1).
“So, if you were to look at it just from the strategic asset allocation mix perspective, you would probably have … something like 15% of your portfolio in gold because … it is the one asset that does very well when the typical parts of your portfolio go down.”
Gold’s appeal is straightforward. Unlike fiat currencies, it can’t be printed at will by central banks. It’s also long been viewed as the ultimate safe haven — and has proven its mettle so far in 2026 by hitting record high prices (12).
Dalio isn’t alone in that view. The benefit of gold is that its performance is not seen as being tied to any one country, currency or economy. When markets wobble, or geopolitical tensions flare, investors tend to flock to gold, driving prices higher.
In fact, Jeffrey Gundlach, founder of DoubleLine Capital and widely known as the “Bond King,” recently said that a 25% portfolio allocation to gold “is not excessive,” calling the metal “an insurance policy” that’s likely to remain “in a winning mode” amid ongoing dollar weakness (13).
Over the past twelve months, gold prices have skyrocketed, and some investors predict even higher prices throughout 2026 (14).
If you want to get in on the action, one way to invest in gold that also provides significant tax advantages is to open a gold IRA with the help of Priority Gold
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 uncertainty.
To learn more, you can get a free information guide that includes details on how to get up to $10,000 in free silver on qualifying purchases.
Gold isn’t the only asset investors turn to during inflationary times. 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.
Its performance of late has shown as much. Over the past five years, the S&P Cotality Case-Shiller U.S. National Home Price NSA Index has jumped by nearly 40%, reflecting strong demand and limited housing supply (15).
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 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 just $100, all without the hassle of mowing lawns, fixing 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 any positive rental income distributions from your investment.
While a declining dollar tends to push investors toward alternatives like real estate and gold, additional asset classes that merit a closer look.
One such asset has posted positive returns over two decades, highlighting strong long-term investment potential. And with its moderate relationship with traditional financial markets, this alternative investment could help protect against inflation, especially amid market uncertainty.
It’s no wonder why this asset has long been favored by the ultra-wealthy as a resilient and lucrative addition to their portfolios. With an estimated value of over $2.5 trillion — projected to reach nearly $3.5 trillion by 2030 — it represents a massive asset class, according to Deloitte (16).
Are you surprised to discover the asset is fine art?
Historically, this alternative asset has been restricted to high rollers, but that’s quickly changing.
With Masterworks — a platform for investing in shares of blue-chip artwork by renowned artists, including Pablo Picasso, Jean-Michel Basquiat and Banksy — you can get a start with art. It’s easy to use, and Masterworks has had 25 successful exits to date.
After signing up, all you have to do is browse their impressive portfolio of paintings and choose how many shares you’d like to buy. Masterworks will handle all the details, from purchase and procurement all the way to storage and sale.
Masterworks has distributed roughly $61 million back to investors, including the principal.* New offerings have sold out in minutes, but you can skip their waitlist here.
*Past performance is not indicative of future returns. Investing involves risk. See important Regulation A disclosures at Masterworks.com/cd
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@BloombergPodcasts (1); Fiscal Data (2); CNBC (3); @RayDalio (4); CNN (5); Fortune (6); Bloomberg (7); The Guardian (8); Federal Reserve Bank of Minneapolis (9); Business Insider (10); @CNBCInternationalLive (11); BBC (12); @DoubleLineCapital (13); Reuters (14); S&P Global (15); Deloitte (16)
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Disclaimer : This story is auto aggregated by a computer programme and has not been created or edited by DOWNTHENEWS. Publisher: finance.yahoo.com
