Billionaire investor Ray Dalio’s latest warning about a potential U.S. debt crisis is putting a fresh spotlight on an ETF trade that has already been gaining traction: moving away from long-duration Treasuries and toward assets such as gold and Bitcoin.
The Bridgewater Associates founder said investors should reduce their bond exposure and consider allocating 10% to 15% of their portfolios to gold, along with a smaller Bitcoin position. Dalio warned, according to Bloomberg, that a U.S. debt crisis could arrive in roughly three years, "give or take two," if policymakers fail to rein in the fiscal deficit.
His comments arrive as the long end of the Treasury market is already under pressure. The iShares 20+ Year Treasury Bond ETF (NASDAQ:TLT) recently fell to $81.35, its lowest closing level since June 2004, while the fund was down about 6.6% year to date.
• iShares 20+ Year Treasury Bond ETF stock is showing downward pressure. Where are TLT shares going?
TLT vs. Gold
