Dalio says avoid cash and bonds as autocracy rises

Investment guru Ray Dalio is all in on the Fed/ECB print orgazmo and says to borrow like no tomorrow:

“This printing of money and buying of debt assets has driven interest rates so low that cash and bonds are stupid to own,” he wrote in a post on LinkedIn. “I think one should consider minimizing one’s ownership of cash and bonds in dollars, euros, and yen.”

Dalio, the billionaire founder of Bridgewater Associates, said it would be a good time to borrow in those currencies. Investments should be saved for stocks and inflation-hedge assets in socially and financially healthy countries, he added.

“There is great internal conflict going on in the United States now, which makes it a risky place,” he wrote. “For example, it is entirely possible that neither side will accept losing the 2024 election.”

Indeed. The mood out there in financial world is one of trepidation moving into the US mid term elections this year as the rise of autocracy after years of plutocracy is keeping up Wall Street at night.

Dalio points out that the three major reserve currencies, the US, Europe and to a lesser extent Japan are “all in poor financial shape”, but its the struggle internally in a post COVID, post-Trump, post-Brexit, post-endless QE world that is creating a “new order”.

Omicron’s outbreak in 2022 maybe just the start of a year in volatility.

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