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Geopolitical risks are rising, and everyone needs to consider an allocation to gold.
That’s according to a Bridgewater Associates note to clients released Wednesday, August 9, penned by founder Ray Dalio and staffers Bob Elliott, Steven Kryger and Neil Hannan. Citing tension between the US and North Korea, and the possibility of Congress failing to raise the debt ceiling, the note said it might be time to look at safe haven assets.
“When it comes to assessing political matters (especially global geopolitics like the North Korea matter), we are very humble. We know that we don’t have a unique insight that we’d choose to bet on …We can also say that if the above things go badly, it would seem that gold (more than other safe haven assets like the dollar, yen and treasuries) would benefit, so if you don’t have 5-10% of your assets in gold as a hedge, we’d suggest you relook at this.”
In related news, the market’s reaction to North Korea this week is historically unusual. The Korean won is tumbling as North Korea doubles down on its threat of a nuclear strike near Guam. And gold’s chart has “one of the most bullish” patterns around, according to Jeff Gundlach.
In Wall Street news, Graham Capital, a $14 billion hedge fund, has lost money in almost all of its strategies this year. Here’s how a UBS executive landed the role of a lifetime alongside Robert DeNiro. And the CEO of ADP just said on live TV that billionaire Bill Ackman reminds him of “a spoiled brat in school.”
In other news, Wall Street traders have had a tough year – and it’s eating into their bonuses. Goldman is going to start using a “personality test” for hiring decisions. And millennials are driving a $9 trillion change in investing.
In deal news, an unprofitable yoga chain is making a second attempt at an IPO – for way less money. And Walmart’s latest strategy confirms the death of the American middle class as we know it.
In markets news, traders are making huge bets that millennials are destroying movie theaters, and scorching-hot tech stocks are getting a makeover that could lead to their downfall.
Here’s the latest from Business Insider’s Undividing America series.
- Marrying less and dying sooner – how the downward spiral of manufacturing is hurting American men After Trump’s shocking win, advertisers faced “confusion, anguish, and maybe even a few tears” – now they want to reach his voters How a plan to resettle 100 Syrian refugees ripped apart a small Vermont town “Chick-fil-A is about food”: How national ambitions led the chain to shed its polarizing image Liberal colleges are recruiting conservative professors to “stir up some trouble”
Lastly, meet the stunning Jaguar F-Type in its most extreme form.