Ray Dalio thinks cash is king, in his latest appearance last month, January in Davos Switzerland. But if the billionaire hedge fund manager’s forecast is as accurate as in January 2020 when cash is trash said Ray Dalio, then this could be yet another case of when they tell you to zig, it is better to zag.
“Ray Dalio thinks cash is king, in his latest appearance last month, January in Davos Switzerland”
WEALTH TRAINING COMPANY
If investors accepted Ray Dalio’s view that cash is king in January 2020 and stayed invested all in, when the flu pandemic was spreading in China, where lockdowns were first implemented, investors would have lost a fortune.
So cash was king, not trash, in January 2020 because those cashed-up investors who bought the crash made a small fortune in 2020 as the central banks bailed out markets, creating the Greatest bull market in a global economic lockdown. Hint; in the age of central banks the market trajectory is being steered by central bank liquidity and bot-chasing momentum, with fundamentals and earnings taking a back seat.
But it is a zero-sum game for the bigs to win, many have to lose.
So we have realized taking market tips from Hollywood movies, mainstream media, the sales side tips from banks, what the Fed head said, and even what the billionaire grandmaster players are publicizing on stage, what they think can be a setup for losses.
If dart-throwing monkeys are more likely to make profits than retail investors, then the latter are being manipulated into losses.
“ it is a zero-sum game for the bigs to win, many have to lose”
WEALTH TRAINING COMPANY
Ray Dalio thinks cash is king, is the grandmaster of the game bluffing this time?
“Cash used to be trashy. Cash is pretty attractive now,” Dalio said on CNBC’s “Squawk Box” Thursday. “It’s attractive in relation to bonds. It’s attractive in relation to stocks,” he said.
“Real interest rates went from minus 175 basis points to plus 175 basis points, right? You’ve got a relatively high cash rate,” Dalio said. “You have the classic movement as rates go up and money becomes tied.”
Ray Dalio thinks cash is king despite treasury yields nearing multi-decade highs.
” households and the government cannot afford higher interest rates”
– Wealth Training Company
Moreover, with the economy in freefall, there are fresh corporate layoffs every twenty-four hours, a level of job destruction not seen since the last Great Recession. So, it is no surprise that banks are aggressively cutting credit, fearing a tsunami of bad loans, which will make a crash landing almost inevitable.
Jeffrey Gundlach, a top global bond investor, sees yields topping out with the Fed tightening cycle maturing.
Indeed, households and the government cannot afford higher interest rates. So, it is not inflation that will force the Fed to loosen. Instead, it is the economy in freefall and a potential tsunami of bad loans that the Fed, a private banking cartel, is worried about.
So investors have figured out that the great pivot is insight with already the Fed reducing the hikes from 75bps to 50bps to 25 bps, a pause and a cut in rate hikes could come sooner than most expect as the inflation falling narrative is pedaled.
It is the world order cycle, escalating war in Europe’s east front which could be why Ray Dalio thinks cash is king.
Turning Europe into a battlefield would make Europe a no-go for investors.
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