‘Cash is the worst investment’: Billionaire Ray Dalio warns of inflation risks and advises investors

Posted:

December 20, 2021 10:11 GMT

The founder of the world’s largest hedge fund indicated that cryptocurrency is one option for diversifying your investments.

Founder mayor Global hedge fund Bridgewater Associates, Ray Dalio, warned That investors should avoid relying on cash amid high inflation in which the American economy is immersed.

The billionaire advised: “Don’t judge anything of your revenue or assets by face value, by the number of dollars you own. Look at it in terms of inflation-adjusted dollars.” “So in cash, like this year, you’re going to lose 4% or 5% because of inflation. So pay attention to that, because I think that would be the worst investment,” he said.

Dalio, whose fortune is estimated at $15.6 billion per Bloombergadvised diversification of investments He noted that cryptocurrency is one option to do so. “I see it as an alternative cash in an environment where cash is depreciating in real terms,” the investor commented, explaining that apart from bitcoin he has some money invested in Ethereum.

Similarly, the billionaire explained that diversification should take place by asset classes, as well as by countries. ‘This diversification It must also be international, from countries, not just asset classes, they have a really well diversified portfolio.”