Ray Dalio Sells Final Bridgewater Stake After Warning of Looming Debt Crisis
Billionaire investor Ray Dalio has officially ended a 50-year legacy at Bridgewater Associates, the world-renowned hedge fund he founded in 1975. According to The Wall Street Journal, Dalio has sold his last remaining shares in Bridgewater and stepped off its board, closing a chapter in the history of a firm that helped shape the global hedge fund industry.
Bridgewater Now Backed by Brunei’s Sovereign Wealth Fund
After Dalio’s exit, Bridgewater restructured its ownership, issuing fresh shares to Brunei’s sovereign wealth fund in a multibillion-dollar deal. This transaction has granted Brunei nearly a 20% stake in the company, reinforcing Bridgewater’s international prominence and ensuring robust institutional backing as the firm enters a new era without its legendary founder.
Dalio shared his excitement about the transition in a recent post on X (formerly Twitter), stating:
“I love seeing Bridgewater alive and well without me — even better than alive and well with me.”
Dalio’s Economic Outlook: “Worse Than a Recession” Looms
Dalio’s complete exit from Bridgewater comes at a time when he continues to sound alarms about growing risks to the global economy. Renowned for predicting the 2008 financial crisis, Dalio has now shifted his focus to mounting concerns over a global debt collapse. He warns that overloaded debt, loose monetary policy, and unsustainable fiscal deficits could trigger an economic crisis “worse than a recession,” especially in the United States.
Dalio recently stated:
“When a country is overloaded with debt, the preferred path is to lower rates and devalue the currency, so it is worth betting that this is exactly what will happen.”
He cautioned that if the U.S. government fails to cut its budget deficit to below 3% of GDP, the country may face an “economic heart attack” that could destabilize its financial system.
Investment Strategy Shift: Bitcoin and Gold in the Spotlight
In response to these economic concerns, Dalio has increased his recommended allocation for Bitcoin and gold. He now advises that investors consider placing up to 15% of their portfolio in these store-of-value assets—a significant boost from his previous 1–2% allocation advice. Dalio views both Bitcoin (which he calls “one hell of an invention”) and gold as critical hedges against inflation, currency devaluation, and systemic risk. Despite advocating for Bitcoin, Dalio maintains a preference for gold but believes both assets play essential roles in diversification given today’s uncertain macroeconomic climate.
A Mixed Track Record of Predictions
Dalio’s warnings on economic collapse are taken seriously by many due to his track record—most notably, his accurate call of the 2008 recession. However, some of his earlier forecasts have fallen short. Notably, in 1982, he incorrectly predicted a severe global depression, which nearly bankrupted Bridgewater. Dalio himself has acknowledged these missteps, highlighting the humility needed in economic forecasting.
Critics argue that Dalio’s outlook sometimes suffers from overgeneralization, confirmation bias, and unclear timing. Recent skeptical commentaries highlight that while Dalio’s views often make headlines, not all of his predictions have come true—underscoring the complexity and unpredictability of global markets.
Bridgewater’s Future Beyond Dalio
With Bridgewater Associates now under new ownership structure and substantial backing from Brunei, the world’s largest hedge fund is poised to continue innovating in quantitative investing. As Dalio moves on from day-to-day involvement, his legacy as a pioneering investor and outspoken economic commentator will continue to influence both traditional and digital asset markets.
Dalio’s next chapter may see him influencing markets from afar, but his warnings on global debt, currency devaluation, and the importance of portfolio diversification with assets like Bitcoin and gold are certain to remain a focal point for investors navigating an uncertain future.