Ray Dalio Says “Cash Is Trash”, Investors Should Diversify Portfolio With Gold
by Tyler Durden
ZeroHedge.com
Tue, 01/21/2020
Bridgewater Associates founder Ray Dalio sat down with CNBC’s Squawk Box at the World Economic Forum in Davos, Switzerland, on Tuesday.
Dalio said investors should ride the market melt-up but dump cash for a diversified portfolio as central bankers undergo unprecedented money printing.
“Cash is trash,” Dalio said. “Get out of cash. There’s still a lot of money in cash.”
"You can't jump into cash. Cash is trash," says @RayDalio. "You have to have a well-diversified portfolio, you have to be global, and you have to have balance…and you have to have a certain amount of gold in your portfolio." pic.twitter.com/lZqCnvsqBh
— Squawk Box (@SquawkCNBC) January 21, 2020
Dalio has claimed before that “cash is trash.” He said back in 2018 that “if you’re holding cash, you’re going to feel pretty stupid”, cash would go on to be the best-performing asset of the year.
This time he suggests diversifying into gold…
“You have to have balance … and I think you have to have a certain amount of gold in your portfolio,” Dalio said, adding that gold will be a top asset to own in the years ahead as central banks will fail to normalize in the next downturn, which could’ve already started.
And with the market melt-up accelerating at an unprecedented pace, and hitting new all-time highs day after day even as broad S&P valuations are now at nosebleed levels last seen during the dot com bubble — Greg Jensen, the co-CIO of Bridgewater, warned that stocks are at “frothy” levels and predicted gold would soar to $2,000 and higher because the Fed and other central banks would let inflation run hot for a while and “there will no longer be an attempt by any of the developed world’s major central banks to normalize interest rates.”
The Rest…HERE
My cash from dividends and interest from stocks and bonds spends just fine.