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Ray Dalio says cash is not a safe place for now, despite rising market volatility

Bridgewater Associates Ray dalio Despite the market volatility caused by the new Covidomicron variant, he stood in his belief that cash was not where it existed.

“Cash is not a safe investment, it is taxed by inflation, so it is not a safe place,” the founder of the world’s largest hedge fund told CNBC on Tuesday. “Squawk Box”

Building a safe and balanced portfolio is also important in times of turbulence, billionaire investors said.

“You can reduce the risk without reducing the return. We will not put this on the market. Even if you are a great market timer, what is happening can change the world, so the market It changes what could be priced at, “Dario said.

Omicron strain coronavirusFirst identified in South Africa, the World Health Organization called it “Variant of concern.. “NS Dow Jones Industrial Average I slid 900 points on Friday and suffered Worst day since October 2020.. Equity futures showed another major downturn following a rebound on Wall Street on Monday as investors monitored the ongoing health crisis.

The stock market in March 2020 recovered rapidly from a pandemic bottom, thanks to the large fiscal and financial stimulus measures organized by the government and the Federal Reserve to support the economy. However, excess money supply in the system can cause certain economic and political problems, Dario said.

“You can’t raise your standard of living by increasing the amount of credit in your system, because it’s enough money to chase the same amount of merchandise,” he said. “As we have seen, it will affect financial markets and affect inflation. It will not raise the standard of living in a significant way. Then inflation will begin to bite and have political implications,” he said. rice field.

Major inflation gauges surged in October, The fastest pace since the early 1990s.. The Consumer Expenditure Price Index, excluding food and energy, is a closely followed indicator by Federal Reserve policy makers, rising 4.1%.

Central banks have been tackling more aggressive and sustainable inflation than expected. Officials said they believe inflation is at a point where it can begin to gradually reduce the amount of monthly stimulus it offers through bond purchases.

“What we see has been repeated over and over again in history, it’s like watching a movie again,” Dario said.

Ray Dalio says cash is not a safe place for now, despite rising market volatility

Source link Ray Dalio says cash is not a safe place for now, despite rising market volatility

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