Ray Dalio vs. Cash 💸

Table of Contents

Ray Dalio vs. Cash

Cash is king used to be a literal saying. Today, it just might be an old saying of past generations — that’s what billionaire Ray Dalio thinks. Ray Dalio is an American billionaire investor and founder of the world’s largest hedge fund, Bridgewater Associates. On Tuesday, he commented on cash, saying it’s not a safe investment in the current state of the economy.

Dalio says cash isn’t a safe investment because it will be taxed by inflation. The initiatives put in place by the Government and the Federal Reserve propped up the economy and stock markets amid the global pandemic. However, the system’s surplus money supply might cause inflation. Dalio said “You can’t raise living standards by raising the amount of money in the system because that’s just more money chasing the same amount of goods… It will affect the inflation rate.” He’s not wrong.

In October, we saw inflation rise at its fastest pace since the early 1990s. Prices for personal consumption expenditures, excluding food and energy, grew by 4.1% from last year. And just today, Fed chair Jerome Powell told lawmakers it’s time to retire the word “transitory” when referring to the current inflation. He confirmed inflationary pressures will last well into the new year.

You don’t have to be an expert economist to notice the power of your dollars decreasing. Every day I see people complaining about the increase in prices. Groceries, gas, toiletries, food from your favorite restaurants — they’re all becoming more expensive.

Are you sitting on cash right now or have you put all your cash in investments like stocks and cryptocurrency?

I am not a financial advisor and my comments should never be taken as financial advice. Investments come with risk, so always do your research and analysis beforehand.

Share:
More Posts
The Crude Oil Bust 🛢

Surging global crude oil prices, driven by factors like OPEC+ production cuts have pushed U.S. West Texas Intermediate futures to over $95 per barrel.

Metaverse Returns 🤖

Meta, led by CEO Mark Zuckerberg, is intensifying its commitment to innovation in the Metaverse through the introduction of the Quest 3 VR headset.

Higher Rate Households 📈

The recent Fed decision to pause rates has left the federal funds rate at its highest level since 2000.

Get your daily Invstr Crunch

Get the market news and updates you need, delivered to your inbox or available on our daily podcast.

Risk Disclosure:

Invstr is not a bank and banking services are provided by Vast Bank, N.A.

Brokerage and Banking services are currently only available to U.S. residents.

Invstr app and web services are provided by Invstr Ltd. Advisory services are provided by Invstr Financial LLC, an investment adviser registered with the Securities Exchange Commission (SEC) details of which can be obtained here. Securities brokerage and custody services are provided by Apex Clearing, a broker dealer registered with the SEC and a member of FINRA and SIPC. There is no bank guarantee on securities and securities may lose value.

Investing involves risk and can lead to losses. Past performance does not guarantee future results.

Invstr app and web services are provided by Invstr Ltd. Invstr+ advisory services are provided by Invstr Financial LLC, an investment adviser registered with the Securities Exchange Commission (SEC). Securities brokerage and custody services are provided by Apex Clearing, a broker dealer registered with the SEC and a member of FINRA and SIPC. There is no bank guarantee on securities and securities may lose value. Vast Bank N.A. a nationally chartered bank and member of the FDIC, provides the banking products, including the products and services related to digital asset accounts. As with any asset, the value of Digital assets can go up or down and there can be a substantial risk that you lose money buying or holding digital assets. You should carefully consider whether trading or holding Digital assets is suitable for you in light of your financial condition. Your digital account does not support wallet to wallet transferring of your digital assets (i.e. cryptocurrencies) outside the platform. Any Digital Assets in your digital asset account are not insured by any government entities, including but not limited to FDIC or SIPC. The Invstr Visa® Debit Card is issued by Vast Bank, N.A. pursuant to a license from Visa U.S.A Inc and may be used everywhere Visa debit cards are accepted. Invstr Ltd, Invstr Financial LLC and Invstr Securities Ltd are subsidiaries of Marketspringpad Holdings (collectively “Invstr”) and Invstr is solely responsible for the application services and website content.

Watchlists provided when users first access the service are not a recommendation to invest. Instead they are provided to help users better navigate the service. Users are free to edit and create their own watchlists. From time to time, Invstr will suggest instruments solely based on an individual’s interest and the interest levels of the Invstr community. The statistical and portfolio builder models generated by Invstr do not reflect actual investment results and are not guarantees of future results. Comments provided by Invstr leaders, influencers or members of the Invstr Community are not recommendations and should not be construed as such. Invstr does not endorse the content or the positions posted by them. Their investment approach, and that of the models provided by Invstr, may be different from yours and may not be appropriate for you.