Dalio US Elections: Why Investors Should Diversify Now

Ray Dalio has warned that the strong performance of gold in 2025 reflects a broader decline in the value of fiat currencies. He said gold’s 65% rise in dollar terms highlights inflationary and purchasing power concerns. In contrast, the S&P 500 returned 18%, but when measured in gold terms, it fell 28%. Dalio emphasized the need for investors to understand the impact of currency depreciation on their returns.

Dalio also pointed to stretched valuations and geopolitical risks as key concerns for 2026. He noted that US stocks are trading at historically low expected returns, below 5%, and warned that markets could be vulnerable to shifts in monetary policy and rising debt levels.

He urged investors to hedge their exposures and reassess their risk strategies as macroeconomic conditions evolve.

IQSTEL, a telecom and fintech company, has outlined its 2026 strategy, which includes consolidating its telecom operations and expanding its global footprint to nearly 30 countries. The company plans to acquire 100% ownership of several key subsidiaries and migrate them to a unified technological platform to reduce costs and improve scalability. IQSTEL also aims to launch cybersecurity services for the telecom industry and increase its revenue by 26% to $430 million in 2026.

Why Did This Happen?

The gold rally in 2025 was driven by central bank purchases, geopolitical tensions, and concerns over inflation. Dalio argues that the rise in gold is a sign of global economic instability and a loss of confidence in fiat currencies. He warns that investors should not rely solely on US equities or bonds, as their returns are being distorted by currency depreciation and low real yields.

In 2025, the US dollar weakened against most major currencies, which reshaped investment returns for non-dollar-based investors . Euro and Swiss franc investors, for example, saw minimal gains in the S&P 500, while gold-based investors saw significant losses in US equities. This dynamic has pushed investors to seek alternative assets and hedging strategies .

How Did Markets React?

IQSTEL’s strategic focus on telecom consolidation and global expansion has been seen as a positive step by analysts, despite the company’s current financial challenges . The stock is trading near its 52-week low, but some see upside potential as the company moves to streamline operations and increase profitability . The launch of cybersecurity services and the planned dividend policy could help attract more institutional investors .

Meanwhile, the US cryptocurrency market is facing regulatory uncertainty. A key bill to create a unified regulatory framework for digital assets could be delayed until 2027 due to political pressures surrounding the 2026 midterm elections . Senate Democrats may hesitate to support the legislation before the elections, and conflict-of-interest provisions remain a major point of debate .

What Are Analysts Watching Next?

BlackRock has highlighted artificial intelligence as a major driver of economic growth in 2026. The firm expects AI to boost productivity and corporate earnings but warned that market concentration is increasing . More than $500 billion was invested in data centers in 2025 alone, with trillions expected to flow into AI infrastructure through the end of the decade .

OFAC enforcement actions are also a key focus for investors in 2026. The agency is intensifying its crackdown on gatekeepers such as accountants, lawyers, and financial advisors who fail to mitigate sanctions risks . This trend is expected to continue as the US government seeks to maintain pressure on countries like Venezuela, Iran, and Russia .

The 2026 US midterm elections are another wildcard for markets. With key races in Georgia and potential shifts in congressional control, investors are watching for any delays in major legislation, including crypto and sanctions-related bills . The outcome of these elections could reshape policy priorities and investor sentiment in the second half of the year .