VWO - No More 'Cash Is Trash': Billionaire Ray Dalio Says Cash Is Good But Only Temporarily — Here's How He's Positioning His Portfolio | Benzinga
In 2020, billionaire investor Ray Dalio famously claimed that "cash is trash." He later elaborated that cash is not safe because "it will be taxed by inflation." But as time passed, Dalio's view on cash has made a U-turn.
"Temporarily, right now, cash I think is good … and the interest rates are fine. I don't think it will be sustained that way," he said at the Milken Institute Asia Summit in Singapore last week.
In the U.S., the Federal Reserve has implemented significant interest rate hikes to cool inflation. The federal funds rate is now at its highest level since 2001. For investors, some high-yield savings accounts are now paying over 5% annual percentage yields (APYs).
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Dalio also told the audience what he doesn't want to own at the moment.
"I don't want to own debt, you know, bonds and those kinds of things," he said.
When asked about his approach to deploying capital, Dalio said that he would want to be "in the right places" geographically. He also emphasized the importance of ...