Ray Dalio No Longer Thinks Cash Is Garbage, Short-Term Rates 'Almost Right' - Bloomberg

Billionaire Ray Dalio, founder of Bridgewater Associates, has changed his view on holding cash and said he no longer thinks “cash is garbage.” He also said that short-term interest rates are “almost reasonable at this point.”

As John Maynard Keynes is credited with saying: “When the facts change, I change my mind. What do you do, sir?” Along these lines, the facts have changed and I’ve changed my mind about cash as an asset: I no longer think cash is trash. (1/2)

— Ray Dalio (@RayDalio) October 3, 2022

Dalio said on Twitter that cash is “nearly neutral right now” given current interest rates and the shrinking of the Fed’s balance sheet, and that it is a “neither good nor bad deal.” ‘ said.

At existing interest rates and with the Fed shrinking the balance sheet, it is now about neutral—neither a very good or very bad deal. In other words, the short-term interest rate is now about right. (2/2)

— Ray Dalio (@RayDalio) October 3, 2022