Ray Dalio: Stock Market Is Late Cycle – Have A 5% To 10% Allocation To Gold

Some of the smartest, most legendary investors are saying to have a 10% portfolio allocation to gold. Here’s what Ray Dalio recently said…

When Ray Dalio talks, people listen.

Ray Dalio lays out the case that the US stock market is now in the late cycle, meaning it is too expensive and there is too much debt. Ray suggests having a 5% to 10% allocation to gold, with the larger percentage amount being used later in the cycle.

Here’s the interview where Ray discusses this, started at the timestamp of 26:29 (which he goes on to talk about at until the 30 minute mark):


While the entire video is good to carve out time for a watch, here is additional talk about gold at the 43:25 minute market:


Ray Dalio says that basically all major fiat currencies are at risk, such as the US dollar, euro and yen.

Of course they are.

That is what happens when governments go off of the discipline of a gold standard. They print money, and eventually, they hyper-inflate the currency away.

Also of interest is historical back-testing of bullion allocation percentages. There is historical back-testing information over at SD Bullion with data showing why from 1968 to through 2016, a 10% allocation to gold may not have been quite enough.

The World Gold Council also has a back-testing Portfolio Simulator tool that is pretty neat to use as well, where you can analyze actual or hypothetical portfolios using major asset classes, including gold.

Here’s a screenshot of the WGC simulator tool:

Check it out if you have time, or if you are looking to simulate some different portfolio strategies to help with investment decisions.

What is the bottom line here?

Some of the most legendary, smartest investors in the world are saying have a 10% allocation to gold. They are also saying we are very late in this stock market cycle.

‘Ol Half Dollar thinks a 10% allocation is too low of an allocation, especially at these bargain basement prices, but then again, Half Dollar’s a Silver Bug so of course he would say that.

Regardless, some gold is better than no gold.

Silver too.

Stack accordingly…

– Half Dollar


About the Author

U.S. Army Iraq War Combat Veteran Paul “Half Dollar” Eberhart has an AS in Information Systems and Security from Western Technical College and a BA in Spanish from The University of North Carolina at Chapel Hill. Paul dived into gold & silver in 2009 as a natural progression from the prepper community. He is self-studied in the field of economics, an active amateur trader, and a Silver Bug at heart.

Paul’s free book Gold & Silver 2.0: Tales from the Crypto can be found in the usual places like Amazon, Apple iBooks & Google Play, or online at PaulEberhart.com. Paul’s Twitter is @Paul_Eberhart.