Hedge fund manager Ray Dalio recommends investors consider placing 5 percent to 10 percent of their assets in gold as a hedge against current political and economic risks.
Dalio, the idiosyncratic billionaire who leads the world's largest hedge fund at Bridgewater Associates, said the market may be challenged by current events, according to a LinkedIn post on Thursday.
"The emerging risks appear more political than economic, which makes them especially challenging to price in," wrote Dalio, who rarely makes specific market recommendations.
Among the risks Dalio mentions: "Two confrontational, nationalistic, and militaristic leaders playing chicken with each other" and "the odds of Congress failing to raise the debt ceiling (leading to a technical default, a temporary government shutdown, and increased loss of faith in the effectiveness of our political system) rising."