Billionaire Ray Dalio advises no cash and bonds amid America’s paradigm shift.

Posted:

5 one 2022 19:12 GMT

The American Mogul recommends investors to have a “highly diversified” asset portfolio.

US billionaire Ray Dalio, founder of Bridgewater Associates, the world’s largest hedge fund, on Tuesday repeated his warning against holding cash and bonds, amid the current paradigm shift in the United States, driven by massive debt shifting and federal intervention. reserve in the financial markets.

‘Printing money and buying debt assets made rates Interest is so low that it’s stupid to have cash and bonds“, they quote Media A LinkedIn post by Dalio. “If you don’t get an interest rate, why would you keep your money there? You’re guaranteed to get poor interest rates, especially cash,” he warns.

It also recommended “considering the possibility of reducing your ownership of cash and bonds in dollars, euros and yen (and/or borrowing from them) and putting the money in A highly diversified asset portfolio.”.

“Investments should be allocated to stocks and assets to protect against inflation, especially in countries that are well financed and whose populations are educated, urban, and have bylaws,” says the billionaire investor.

“The size of financial assets relative to actual assets is dangerously high, which could lead to a move of this kind.” run the bankHe explained, referring to the panic that drives people to withdraw their money from banks, fearing the collapse of the system and the failure to respond to their savings.

With regard to changing paradigms, an American tycoon emphasized that these “usually last about 10 years, with occasional significant corrections,” driven by conditions that “lead them to swing from one extreme to the other,” so that each paradigm is likely to be rather the opposite of the previous one. .