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
No. 1-25
surfaddict
surfaddict

can I pay off debt with cash? Debt is garbage

ttffrun
ttffrun

Cash is trash until it is not and by that time cash (hard cash, digital or anything that comes close to liquid) will not just be king - it will be the emperor.

Pater_Tenebrarum
Pater_Tenebrarum

What Dalio neglects to mention: someone always has to hold all the cash balances that exist, just as someone has to hold all the shares that exist. There is no mysterious Wall Street Aether in which "unowned" cash or stocks float about. Thus the investor class as a whole can never escape a bear market; and someone will always be the owner of all that trashy cash. If he is right, and cash is trash, then he is really saying: "you have to find some idiot who hasn't heard about this yet and persuade him to take it off your hands in exchange for his much more valuable Netflix shares". If he is wrong, you will end up as the last or perhaps the penultimate greater fool. No-one can know for sure - but we can certainly make a few educated guesses. My guess is pretty much the opposite of Dalio's.

Musashi
Musashi

I worked in fiance for +20 years, but happily escaped it. Reading and listening to people like Ray used to interest me, now it annoys me. When he talks about volatility, inflation and trashy cash, this is just his way of saying he doesn't give a crap about normal Americans--just his own portfolio, fame, and glory. Why these charlatans and crony capitalists are given a platform to spew their anti-civilization rhetoric is beyond me.

Ambrose_Bierce
Ambrose_Bierce

Not what he said, he said there are times when cash is the best investment, such as the great depression when even a savings account in a bank was not safe, and just about any bear market where stocks lose value over an extended period. the penultimate digital currency will be transaction only, which means holding money will no longer be possible, which to my thinking would make gold the first and last place to park assets.