Billionaire Ray Dalio: Cash Is More And More Precious

It seems that the famous billionaire Ray Dalio is praising cash these days. Check out what he has to say below.

According to billionaire investor Ray Dalio, the saying “cash is trash” is no longer true due to significant changes in the macroeconomic landscape.

In a recent discussion at the Greenwich Economic Forum, Dalio explained how financial conditions have shifted in the past few years, making cash a relatively attractive asset class for the time being.

He pointed out that while he previously said “cash is trash,” that was when cash held no value.

However, at present, cash offers a decent 1.5% real return and does not pose any price risk, making it an appealing option compared to other investments.

The founder of Bridgewater Associates, Ray Dalio, previously advocated for minimizing cash exposure to avoid losses caused by currency debasement.

In December 2021, Dalio stated that he believes cash is the worst investment, despite it being considered the safest by most investors.

He emphasized that cash loses buying power and advised investors to judge their returns and assets in terms of inflation-adjusted dollars rather than nominal terms.

Dalio warned investors that holding onto cash could result in a 4% to 5% loss to inflation, making it the worst investment. It’s important to pay attention to these factors when investing.

In other rerecent news, according to Martin Bednall, the CEO of Jacobi Asset Management and a former managing director at BlackRock, regulators in the US are likely to approve all applications for spot Bitcoin exchange-traded funds (ETFs) at once.

Bednall made this prediction during a panel discussion at the Digital Asset Summit in London hosted by CCData.

He believes that the US Securities and Exchange Commission (SEC) has a strong incentive to approve the applications simultaneously, which would have a positive impact on the market.

We suggest that you check out our previous article in order to learn more details.