Ray Dalio is one of the world’s richest men, one of its most prominent investors, and the founder of one of the world’s largest hedge funds. He’s also bearish on the future of the economy, betting $1.5 billion that the economy will turn south before then. If stocks turn south by the end of March, Dalio could win big. If they don’t, his firm is out over a billion dollars. So will he end up being right?
There’s obviously a lot that could happen between now and then, but don’t be surprised to see stocks lose a significant amount of value over the next several months. Stock indices are at near record high levels, something that’s highly unusual given the economic slowdown that is going on around the world. The last time we saw a disconnect like this was in 2007, when stock markets peaked in October before beginning a slow decline into 2008.
If history repeats itself in that way then stock markets could very well be several thousand points lower by next spring. Apparently many professional investors aren’t too worried about that happening, as the continued run of stock markets in recent weeks has fewer and fewer investors hedging their positions against a stock market crash. But if Dalio turns out to be right, and the probability of that is high, then he will find himself in far better financial shape than his competitors.
Individual investors need to hedge their positions too, and the best way of doing that is by investing in gold. Gold has served for centuries to safeguard investor assets and protect financial wealth through financial turmoil and economic uncertainty. During the financial crisis, investors who invested in gold saw their portfolios increase significantly in value while stock markets suffered.
If you’re worried about the possibility of an upcoming stock market crash wiping out the value of your retirement portfolio, then start thinking about investing in gold today. Only gold can provide the protection you need to keep your assets safe from a stock market collapse.