Ray Dalio, founder of Bridgewater Associates — the world’s largest hedge fund — isn’t one to mince words and his latest warning may be his starkest yet.
In a recent interview with the Financial Times, Dalio said the U.S. is moving toward 1930s-style autocratic policies under President Donald Trump. He added that other investors are too afraid of Trump to speak up [1].
“I think that what is happening now politically and socially is analogous to what happened around the world in the 1930-40 period,” Dalio said, pointing to a decline in trust, combined with “gaps in wealth” and “gaps in values,” as forces pushing America toward “more extreme” policies.
As an example, he cited the Trump administration’s move to take a 10% stake in embattled chipmaker Intel — a clear case of government intervention in the private sector. Dalio described it as “strong autocratic leadership that sprang out of the desire to take control of the financial and economic situation.”
Dalio also sounded alarms about Trump’s influence over the Federal Reserve. Trump has openly pressured the central bank to slash interest rates, repeatedly attacked Fed chair Jerome Powell and is attempting to fire governor Lisa Cook.
If the Fed caves to political demands and keeps interest rates low, Dalio warned, it would “undermine the confidence in the Fed defending the value of money and make holding dollar-denominated debt assets less attractive which would weaken the monetary order as we know it.”
So where can investors turn?
Dalio’s safe haven for ‘bad times’
Dalio told the Financial Times that international investors have started shifting out of Treasuries into gold.
Gold’s appeal here is straightforward: unlike fiat currencies, the yellow metal can’t be printed at will by central banks.
It’s also widely regarded as the ultimate safe haven. Gold is not tied to any one country, currency or economy and in times of economic turmoil or geopolitical uncertainty, investors often flock to it — driving prices higher.
Over the past 12 months, the price of gold has surged more than 40%. Dalio has long emphasized its role as a hedge against chaos.
“People don't have, typically, an adequate amount of gold in their portfolio,” he told CNBC earlier this year. “When bad times come, gold is a very effective diversifier.”
One way to invest in gold that also provides significant tax advantages is to open a gold IRA with the help of Thor Metals.
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 uncertainties.
To learn more, you can get a free information guide that includes details on how to get up to $20,000 in free metals on qualifying purchases.
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The asset that made Trump rich
If gold is the common go-to hedge for moments of chaos, real estate is the long game — and few know that better than Trump himself.
Before politics, Trump made his fortune in real estate — and the asset class remains a powerful tool for building and preserving wealth, especially during inflationary times. That’s because property values and rental income tend to rise along with the cost of living.
Unlike some other investments, real estate doesn’t need a roaring stock market to deliver returns. Even during downturns, high-quality properties can generate rental income — offering a dependable stream of passive cash flow.
As Trump told Steve Forbes back in 2011, “I just notice that when you have that right piece of property, whatever it might be, including location, it tends to work well in good times and in bad times” [2].
Today, you don’t need to buy a property outright to benefit from real estate investing. 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 as little as $100, all without the hassle of mowing lawns, fixing leaky 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.
Another option is First National Realty Partners (FNRP), which allows accredited investors to diversify their portfolio through grocery-anchored commercial properties without taking on the responsibilities of being a landlord.
With a minimum investment of $50,000, investors can own a share of properties leased by national brands like Whole Foods, Kroger and Walmart, which provide essential goods to their communities. Thanks to Triple Net (NNN) leases, accredited investors are able to invest in these properties without worrying about tenant costs cutting into their potential returns.
Simply answer a few questions — including how much you would like to invest — to start browsing their full list of available properties.
Article sources
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[1]. Financial Times. “US sliding towards 1930s-style autocracy, warns Ray Dalio”
[2]. Forbes. “Trump Reflects On His Real Estate Portfolio's Performance”
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Jing is an investment reporter for MoneyWise. He is an avid advocate of investing for passive income. Despite the ups and downs he’s been through with the markets, Jing believes that you can generate a steadily increasing income stream by investing in high quality companies.
