16 sep 2021 18:09 GMT
The founder of the world’s largest hedge fund warned of when stocks may come under pressure.
In this time of rising inflation, investors are creating additional risks if they keep their funds in cash, says Ray Dalio, founder of the world’s largest hedge fund, Bridgewater Associates.
“First of all, know that cash is junk, so do not save your resources in cash“Dalio stressed in a interview awarded to CNBC’s Squawk Box.
His advice to any investor is to diversify your investments by country, currency, and asset class; after which they will be able to take tactical steps.
“All these asset classes will outperform cash,” said Dalio, whose fortune is valued at $ 15.6 billion por Bloomberg.
The investor, whose fund manages about $ 150 billion, according to Forbes, said that the shares as an asset could be under pressure as soon as the Federal Reserve and other central banks around the world come to review their soft fiscal policy.
The Federal Reserve is going to focus next week on rising inflation and the country’s economic situation. So far, Jerome Powell, chairman of the central bank, has argued that the high rate of inflation in a provisional phenomenon.
Earlier this month, veteran investor Bill Gross I consider as “junk” the cash, bonds and funds that buy them, in an analysis he posted on his website.