EDITOR NOTE: There are no riskless assets; not even cash. And in an environment of high inflation, cash is a pauper in king’s clothes. Take it from the so-called “smart money,” the likes of Ray Dalio, Warren Buffett, and countless others that may or may not hold legendary status. If they’re not going to stocks (hardly any are going to bonds), they’re “safeguarding” the value of their assets, cash included, by investing in gold and silver. Can you think of a better safe haven?
Investors have the impression that cash is the least risky asset, but it’s actually “not a safe investment,” says Ray Dalio, founder of investment firm Bridgewater Associates.
This isn’t the first time he has warned investors about holding cash. Earlier this year, he said “cash is trash.”
“I think that there’s an instinct to think that cash is the lowest risk asset, because it has less volatility, and also because we look at everything through the lens of cash – what is everything in dollars worth,” he told CNBC’s “Street Signs Asia” on Wednesday.
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