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The early 1970s were a turbulent time in America – marked by soaring inflation, the oil crisis and a sharp decline in stock prices that left investors looking for safe havens.
And, according to billionaire investor Ray DeLeo, history may be repeating itself. Rising prices and large government spending could cause investors to once again question the value of fiat currencies and the paper assets associated with them.
“It’s like the early 70s … what do you put your money into?” “When you have money, you put it into debt instruments. And when you have so much supply of debt and debt instruments, it’s not an efficient asset store,” Dalio said at the Greenwich Economic Forum.
In fact, Dalio has long warned about the size of the US national debt, which is approaching $39 trillion and will top it in February 2026 (2). He described the situation as a potential “debt death spiral” – where the government must borrow just to pay the interest on existing debt. This process accelerates over time (3).
If the national debt figures feel overwhelming, Dalio has a more personal warning.
The wealth he’s talking about is something that almost everyone keeps in one form or another, whether in bank accounts or under the mattress: the US dollar.
In a post on X, Dalio shared a question and answer he had with the Financial Times (4). When asked what would happen to bonds and the dollar if a politically weak Federal Reserve allowed inflation to heat up, his answer was clear.
“It will cause bonds and the dollar to fall in value, and if not corrected, it will cause them to become an ineffective store of wealth and collapse the monetary order as we know it.”
The comment did not come at a more sensitive time for the Federal Reserve. President Donald Trump has repeatedly attacked Federal Reserve Chairman Jerome Powell, most recently naming Kevin Warsh as his successor. A former inflation hawk, Warsh now favors low interest rates – in line with Trump’s goals (5).
The president also came under fire for trying to remove Fed Governor Lisa Cook, the first time a president has attempted to remove a governor in the central bank’s 112-year history. Cook sued to keep his job, and it was ruled that he could continue in his job while the Supreme Court debated the case (6).
Amidst this confusion, Dalio warned that if investors begin to believe that the Fed will artificially keep rates too low, this could lead to an “unhealthy decline in the value of the currency (4).”
To be sure, this decline may already be underway. The US dollar index, which tracks the dollar against a basket of major foreign currencies, fell 10.8% in the first half of 2025 – its worst performance since 1973, when Richard Nixon was president (7). And the dollar continued its decline in 2026, falling to a four-year low in January (8).
At the same time, inflation has reduced the purchasing power of Americans. According to the Federal Reserve Bank of Minneapolis, $100 in 2025 sold what only $12.06 bought in 1970—a sobering reminder that the dollar has not been the most effective “store of wealth” for decades (9).
Experts also warn of “stagflation,” a term used to describe a period when GDP growth is moderate, inflation is high and unemployment rates suffer (10).
Not only that, but at a meeting of world governments in Dubai, Dalio sounded the alarm that the world is on the brink of a “war of capital” caused by ongoing geopolitical tensions (11). In other words, money is being weaponized by various global powers – and investors’ portfolios may be the ones that take a beating.
Fortunately, there is some good news amid the warnings. Dalio revealed a fortune that he believes can protect your wealth from whatever comes next.
Read more: I’m almost 50 and have no retirement savings. Is it too late to catch up?
Read more: Non-millionaires can now invest in this $1B private real estate fund starting at just $10
His answer is simple: gold.
“Gold is a great portfolio diversifier,” Dalio said at the Greenwich Economic Forum (1).
“So, if you look at it just from a strategic asset allocation mix perspective, you’d probably … have something like 15% of your portfolio in gold because … that’s the asset that does the best when the normal parts of your portfolio go down.”
The appeal of gold is straightforward. Unlike fiat currency, it cannot be printed at will by central banks. It was also seen as the last safe haven for a long time – and has so far proved its worth by hitting record highs (12) in 2026.
DeLeo is not alone in this view. The advantage of gold is that its performance is not tied to any country, currency or economy. When markets get confused, or geopolitical tensions flare up, investors turn to gold, driving up prices.
In fact, Jeffrey Gundlach, the founder of Double Line 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 is likely to remain in a “winning position” during dollar weakness (13).
Over the past twelve months, gold prices have skyrocketed, and some investors are predicting even higher prices by 2026 (14).
If you want to get in on the action, one way to invest in gold that also provides significant tax benefits is to open a gold IRA with Preferred Gold.
Gold IRAs allow investors to hold physical gold or gold-related assets in a retirement account, which combines the tax benefits of an IRA with the protective benefits of investing in gold, making it an attractive option for those potentially hedging their retirement funds against economic uncertainty.
For more information, you can get a free information guide that includes details on how to get $10,000 in free silver on qualifying purchases.
Gold is not the only asset that investors face in times of inflation. Real estate has also proven to be a powerful hedge.
When inflation rises, property values also rise, reflecting higher costs of materials, labor and land. At the same time, rental income rises, providing landlords with an income stream that keeps pace with inflation.
Lately, he has shown a lot of activity. Over the past five years, the S&P Totality Case-Shiller US National Home Price NSA Index has risen nearly 40%, reflecting strong demand and limited housing supply (15).
Of course, higher home prices can make buying a home more difficult, especially with mortgage rates still rising. And being a landlord isn’t exactly hands-on – managing tenants, maintenance and repairs can quickly eat up your time (and back).
good news You don’t have to buy real estate—or deal with leaky faucets—to invest in real estate today. Crowdfunding platforms like Arrival offer an easy way to get into this income-producing asset class.
Backed by world-class investors like Jeff Bezos, Ariad allows you to invest in rental housing shares with just $100, all without the hassle of mowing the lawn, fixing the faucets or managing difficult tenants.
The process is simple: search a curated selection of homes that have been evaluated for their appreciation and income potential. Once you find a property you like, select the number of shares you want to buy and then sit back when you start receiving positive rental income distributions from your investment.
While the weakening dollar is pushing investors toward alternatives such as real estate and gold, additional asset classes that offer near-term visibility.
One such asset has generated positive returns over two decades, indicating strong long-term investment potential. And with its modest correlation to traditional financial markets, these alternative investments can help protect against inflation, especially amid market uncertainty.
It’s no wonder why these assets have long been chosen by the super-rich as flexible and profitable additions to their portfolios. With an estimated value of more than $2.5 trillion—estimated to reach nearly $3.5 trillion by 2030—it represents a major asset class, according to Deloitte (16).
Are you surprised to find that wealth is fine art?
Historically, this alternative wealth has been limited to high rollers, but that is rapidly changing.
With Masterworks – a platform for investing in shares of blue-chip artworks by renowned artists, including Pablo Picasso, Jean-Michel Basquiat and Banksy – you can get started with art. It’s easy to use, and Masterworks has 25 successful withdrawals so far.
After signing up, all you have to do is browse the impressive portfolio of images and choose how many shares you want to buy. Masterworks will handle all the details, from purchasing and procurement to storage and sales.
Masterworks distributed about $61 million back to investors, including principal. * New offers are sold out in minutes, but you can leave their waiting list.
*Past performance is not indicative of future returns. Investments are risky. See Important Provisions in Disclosure AMasterworks.com/cd
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@BloombergPodcasts (1); financial information (2); CNBC (3); @RayDalio (4); CNN (5); Luck (6); Bloomberg (7); 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)
This article provides information only and should not be used as advice. It is provided without warranty of any kind.
