Founder and Co-CIO of Bridgewater Associates Says "The Worst Asset You Can Have is Cash"

Ray Dalio, the founder, co-chairman, and co-CIO of Bridgewater Associates says we have low volatility in growth, in interest rates, and inflation. In such an environment, the worst asset to own is cash.

Dalio discusses interest rates with Bloomberg’s Tom Keene and David Gura on Bloomberg TV. In the interview, Dalio says the only time one should hold cash is in terrible economic conditions.

There you have it - cash is trash. Nothing can possibly go wrong buying stocks or even Bitcoin at these PEs and prices.

Mike "Mish" Shedlock

Comments (29)
No. 1-25
Sechel
Sechel

cash is not an asset, its optionality

Maximus_Minimus
Maximus_Minimus

So the smart minds in the hedge fund business figure risk has been eliminated. Hmm, sound like 2007, again.

Realist
Realist

Holding a significant amount of cash, which declines in value due to inflation and low interest rates is rarely a good idea unless you are fairly certain a major decline in the economy is coming. If you listened to many of the "doom and gloom crowd" on this blog you may have been in cash for the last several years and missed out on a lot of asset appreciation.

Casual_Observer
Casual_Observer

Thanks to Mish I got out in March 2007. I reentered the market in 2009. The next crash will happen but it will be like Japan over many years. Ask folks in Japan if they wish they had gotten out at the peak of the Nikkei in the 80s. Most would say yes.

themonosynaptic
themonosynaptic

It totally depends on your timeframe. If you need the money next year, cash is a pretty good idea. If you need the money in 30 years time, cash isn't. Why is this so difficult?