Ray Dalio says markets seeing a shift, gold is the place to be
In such a world, storing one’s money in cash and bonds will no longer be safe, Dalio said.
By Nathan Crooks
Ray Dalio thinks the current era of low interest rates and quantitative easing might be coming to an end, and his answer to a new market paradigm that could see escalating conflict between capitalists and socialists is simple -- gold.
“I believe that it would be both risk-reducing and return-enhancing to consider adding gold to one’s portfolio,” the billionaire founder of investment management firm Bridgewater Associates said in a 6,000-word essay posted on LinkedIn.
For Dalio, monetary policy swings between helping debtors or creditors at each other’s expense, and the next move of the pendulum could lead to a new era of debt monetization and currency depreciation.
“The big question worth pondering at this time is which investments will perform well in a reflationary environment accompanied by large liabilities coming due and with significant internal conflict between capitalists and socialists, as well as external conflicts,” Dalio said.
Other Key Quotes:
Ray Dalio thinks the current era of low interest rates and quantitative easing might be coming to an end, and his answer to a new market paradigm that could see escalating conflict between capitalists and socialists is simple -- gold.
“I believe that it would be both risk-reducing and return-enhancing to consider adding gold to one’s portfolio,” the billionaire founder of investment management firm Bridgewater Associates said in a 6,000-word essay posted on LinkedIn.
I believe that we are likely approaching a paradigm shift in the markets and recently explained the dynamic as I se… https://t.co/FNub79JS41
— Ray Dalio (@RayDalio) 1563374456000For Dalio, monetary policy swings between helping debtors or creditors at each other’s expense, and the next move of the pendulum could lead to a new era of debt monetization and currency depreciation.
“The big question worth pondering at this time is which investments will perform well in a reflationary environment accompanied by large liabilities coming due and with significant internal conflict between capitalists and socialists, as well as external conflicts,” Dalio said.
Other Key Quotes:
- “There will have to be some combination of large deficits that are monetized, currency depreciations, and large tax increases, and these circumstances will likely increase the conflicts between the capitalist haves and the socialist have-nots”
- “In such a world, storing one’s money in cash and bonds will no longer be safe”