Legendary Investor, founder and head of the BRIDGEWATER investment company, managing the world’s largest hedge funds, Ray Dalio, called the unexpected danger of cash. His words leads Reuters.
According to the investor, due to the growing inflation in the world, cash is now not considered a safe way to invest capital. Dalio stressed that the exit for the investor in the current situation could be the diversification of assets and investment in currency and assets of different countries.
According to the financier, investors should pay attention to the fact that such an asset practically does not profit and is not volatile, but is depreciated due to inflation. “It is necessary to change thinking in which everyone is looking at the profit in real terms,” said Dalio.
Previously, Dalio warned the world about the future financial catastrophe. He considered that one of the most likely reasons for the quick global crisis will be the US War with China due to the accumulated contradictions of the two countries. But even if it does not happen, “the catastrophes are still inevitable, as the practice of the last 500 years shows.”
Also Dalio gave advice on how to minimize losses in case of global financial cataclysm. According to him, it is necessary to competently assess their assets, to diversify them, investing into liquid, and in the income tools. Among the assets to which investors should seek, the head bridgewater called cryptocurrencies.