Billionaire Ray Dalio’s Investment Advice: Avoid Cash, Think Inflation-Adjusted Dollars, Cryptocurrencies Help Diversify

Billionaire Ray Dalio, founder of the world’s largest hedge fund, Bridgewater Associates, has shared his investment strategy with cryptocurrency as part of his portfolio. He warned that cash is the worst investment because inflation eats away at it.

Investment Tip From Ray Dalio: Cash Is Depreciating, Diversify Portfolio Well

Bridgewater Associates founder Ray Dalio shared his investment strategy last week. He currently serves as President and Co-Chief Investment Officer of Bridgewater Associates. His firm’s clients include mutual funds, governments, foundations, pensions and sovereign wealth funds.

In an interview with Yahoo Finance, published on Friday, he explained that he views cryptocurrency “as an alternative money in an environment where the value of cash is depreciating in real terms.” Referring to bitcoin, he opined the following:

“I think it is very impressive that, for the last 10, 11 years, that programming has still been maintained. It has not been hacked, etc. And it has an adoption rate. “

When asked how worried he was about inflation, Dalio replied: “I’m very worried about it. Due to the amount of money and credit that must be produced and budgeted for, it is a huge increase. “

The billionaire pointed out that “cash is junk”, adding: “Cash, which most investors believe is the safest investment, is, I think, the worst investment, and that is important because it loses purchasing power.” He pointed out that “cash, like this year, you will lose 4% or 5% due to inflation. And pay attention to that, because I think it will be the worst investment. ”The head of Bridgewater Associates went on to say:

“The only thing I would say to investors is not to judge anything about your returns or your assets in nominal terms, in terms of the amount of dollars you have. See it in terms of inflation-adjusted dollars. “

Dalio proceeded to talk about diversification. “I am very meticulous, I see that diversification is important,” he said, adding that “the important thing is to diversify one’s portfolio well, because we know that there may be surprises in the balance sheet.”

He detailed: “We also know that those asset classes, on average, significantly outperform and will significantly outperform cash and that they move with each other in a way that has to do with correlations because when things go down – when the economy goes down – then bonds will perform better than stocks, and so on. “

The billionaire believes that cryptocurrencies, such as bitcoin, can help diversify portfolios. “I see cryptocurrencies as a small part of that. And the message is that cash will be a troubled asset and it will keep that other diversified portfolio of assets, “he added, emphasizing the following:

“Keep looking at it in real terms, not nominal. And that diversification should also be an international diversification of countries, not just asset classes, to have a really well diversified portfolio ”.

Regarding cryptocurrencies, he previously admitted that he owns bitcoin (BTC). This week, he reportedly said that he also owns ether (ETH). “I don’t have much,” he said without revealing what cryptocurrencies or how much he owns.

In an interview with Marketwatch last week, the founder of Bridgewater Associates had this to say:

“I am not an expert in bitcoins, but I think it has some merit as for a small part of a portfolio.”

“Bitcoin is like gold, although gold is the well-established front-line alternative to fiat money,” he further opined.

However, Dalio warned: “Bitcoin has other problems. If it is a threat to governments, it will probably be outlawed in some places when it becomes relatively attractive. It may not be prohibited in all places. I don’t think central banks or major institutions have a significant amount. “


Disclaimer: This press release is for informational purposes information does not constitute investment advice or an offer to invest. The views expressed in this article are those of the author and do not necessarily represent the views of infocoin, and should not be attributed to, Infocoin.

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