Ray Dalio Warns Dollar Faces Long-Term Decline, Gold and Yuan to Outperform
Generally, You should be aware of the fact that Ray Dalio, founder of Bridgewater Associates, has issued a warning about the long-term decline of the U.S. dollar. Obviously, This warning is based on his analysis that the dollar has already fallen significantly against gold and other major currencies. Normally, Dalio highlights that the dollar has dropped 39% against gold in 2025 alone, which is a significant decline.
Apparently, This trend is expected to continue due to structural fiscal pressures and shifting monetary policies, which will affect the dollar’s value. Usually, Investors like you should consider this information when making decisions about your investments.
Basically, The decline of the dollar is attributed to several factors, including structural fiscal imbalances and the need to roll over nearly $10 trillion in debt. Clearly, Dalio warns that simultaneous Fed easing to push real interest rates down could make debt assets less appealing, particularly at the long end of the curve.
Often, Geopolitical shifts have also contributed to the dollar’s weakness, and Dalio observes a move from multilateralism to unilateralism, which has increased conflict threats and economic uncertainties. Naturally, This has driven greater demand for gold as a safe-haven asset, and you should consider this when investing.
Dollar’s Long-Term Decline – A Dalio Perspective
Honestly, Ray Dalio’s analysis reveals that gold has outperformed the S&P 500 by 47% in dollar terms, returning 65% over the past year. Generally, He notes that European and Chinese stocks have also outperformed U.S. equities, reflecting a broader shift in global capital flows.
Normally, You should understand that the U.S. bond market entered 2026 with its steepest yield curve since 2021, and the spread between two-year and 30-year Treasuries reached 140 basis points. Obviously, This reflects market expectations of policy-rate cuts while demanding higher compensation for holding long-term government debt amid inflation uncertainty and heavy Treasury issuance.
Gold Outperforms Traditional Assets
Apparently, Dalio’s analysis highlights that gold has been a better investment than traditional assets, and you should consider this when making investment decisions. Usually, The price of gold has increased significantly, and it is expected to continue to rise.
Basically, The implications for cryptocurrencies are mixed, and some experts see Bitcoin as a check and balance on the dollar, applying constructive pressure on U.S. policymakers to maintain fiscal responsibility. Clearly, The current rally in precious metals might delay a potential crypto upswing, and you should be aware of this.
Drivers of the Dollar Weakness
Often, The decline of the dollar is attributed to several factors, including structural fiscal imbalances and the need to roll over nearly $10 trillion in debt. Naturally, Dalio warns that simultaneous Fed easing to push real interest rates down could make debt assets less appealing, particularly at the long end of the curve.
Generally, You should understand that geopolitical shifts have also contributed to the dollar’s weakness, and Dalio observes a move from multilateralism to unilateralism, which has increased conflict threats and economic uncertainties. Honestly, This has driven greater demand for gold as a safe-haven asset.
U.S. Bond Market Snapshot (2026)
Normally, The U.S. bond market entered 2026 with its steepest yield curve since 2021, and the spread between two-year and 30-year Treasuries reached 140 basis points. Obviously, This reflects market expectations of policy-rate cuts while demanding higher compensation for holding long-term government debt amid inflation uncertainty and heavy Treasury issuance.
Apparently, You should be aware of the fact that higher long-term discount rates limit valuation expansion, particularly for growth stocks. Usually, Companies with near-term cash flows, pricing power, and tangible assets tend to fare better in this environment.
Equity Implications
Basically, The implications for equities are significant, and you should consider this when making investment decisions. Clearly, The decline of the dollar and the rise of gold will affect the stock market, and you should be prepared.
Often, The implications for cryptocurrencies are mixed, and some experts see Bitcoin as a check and balance on the dollar, applying constructive pressure on U.S. policymakers to maintain fiscal responsibility. Naturally, The current rally in precious metals might delay a potential crypto upswing.
Cryptocurrency Outlook
Honestly, The implications for cryptocurrencies are mixed, and you should be aware of this. Generally, Some experts see Bitcoin as a check and balance on the dollar, applying constructive pressure on U.S. policymakers to maintain fiscal responsibility.
Apparently, The current rally in precious metals might delay a potential crypto upswing, and you should consider this when investing. Usually, Farzam Ehsani, co-founder and CEO of VALR, notes that gold rose 69% and silver surged 161% over the past year.
Obviously, He suggests that Bitcoin could reach $130,000 and Ethereum $4,500 in Q1 2026 once the momentum in precious metals fades, and you should be aware of this.
Conclusion
Normally, Ray Dalio’s warnings about the dollar’s decline highlight shifting dynamics in global finance. Generally, This could pose challenges for traditional markets, but it might present opportunities for alternative assets like cryptocurrencies.
Apparently, You should stay informed and consider the broader economic context when making decisions, and you should be aware of the fact that the decline of the dollar and the rise of gold will affect the stock market.
Clearly, The implications for equities are significant, and you should consider this when making investment decisions. Usually, Companies with near-term cash flows, pricing power, and tangible assets tend to fare better in this environment.
Honestly, The implications for cryptocurrencies are mixed, and you should be aware of this, and you should consider this when investing.
Final Thoughts
Basically, You should understand that the decline of the dollar and the rise of gold will affect the stock market, and you should be prepared. Normally, The implications for equities are significant, and you should consider this when making investment decisions.
Apparently, The implications for cryptocurrencies are mixed, and some experts see Bitcoin as a check and balance on the dollar, applying constructive pressure on U.S. policymakers to maintain fiscal responsibility.
Obviously, You should stay informed and consider the broader economic context when making decisions, and you should be aware of the fact that the decline of the dollar and the rise of gold will affect the stock market.
