Since Birch Gold Group
As the founder of Bridgewater Associates, a $ 160 billion investment giant, Ray Dalio tends to have a pretty good idea of how the market is moving.
So when you comment on macro trends, people tend to listen. And recently, he made a couple of fairly sharp statements about cash that they have experts in their ears.
Speaking to CNBC at the World Economic Forum in Davos, Switzerland, Dalio warned investors that stay without cash:
Cash is garbage … Get out of cash. There is still a lot of cash.
Overall, Dalio suggests that people stop clinging to cash and diversify into other assets as part of a "well-diversified global portfolio."
He added to this proclamation saying that the Fed will not be able to help stimulate the economy by adjusting rates:
We are going to have bigger deficits for which we are going to print money … At some point in the future, we are still going to think about what a store owner of wealth is. Because when you get negative performance bonuses or something, we are approaching a limit that will be a paradigm shift.
Business Insider Dalio's extended comment, saying: "Dalio warned that the value of the strong currency would be eroded by a weaker dollar and a growing money supply."
So, if keeping cash will not be a good idea, it is a good idea to consider adding some Resilience to your wallet
It is better to adopt a balanced approach
Dalio added a "zen-like" vision for retirement savers, while supporting precious metals such as gold as an asset for the future:
You have to have balance … and I think you should have a certain amount of gold in your wallet.
Diversifying with physical assets such as gold and silver surely sounds like reasonable advice for retirement savers. So why don't more billionaires talk about it?
in a recent 5 minutes. According to the Agora Financial forecast, Jim Rickards offered a possible reason why more billionaires do not offer timely comments on the amount of gold they have in their own "balanced" portfolios:
Of course, they won't say it on television because they don't want to scare retail investors to download their stocks and bonds.
So, despite what billionaires may or may not tell us, it is probably best to adopt a balanced approach with our own retirement portfolios.
After all, Dalio believes that the next recession is coming, and says: "There is a good chance in the next [presidential] term that it will slow down."
And Scott Minerd of Guggenheim Partners agrees with this last sentiment, commenting that defaults and rebates will aggravate the economic problem that could come in the short term: "The moment is difficult to predict, but this reminds me a lot of the period before the recession of 2001 and 2002".
The "balance" in your wallet sounds more and more like a good idea.
Don't wait for the next "billionaire panic"
When billionaires like Minerd and Dalio the alarm soundsIt is generally a good idea to listen. But it is not a good idea to wait until they sound next.
The time to consider "adding balance" to your retirement portfolio is now. Examine your risk exposure, including asset classes in your retirement.
Then consider adding physical assets such as precious metals to the mix There is a reason why the ultra-rich maintain their own stores of gold and silver. Maybe you should consider joining them.