Billionaire Tells Investors to Dump Their Cash: It’s ‘Not a Safe Place’

Billionaire investor Ray Dalio said Wednesday he believed it wasn’t “safe” for Americans to hold their assets as cash in light of surging inflation.

“What has to happen, I think, is investors, most importantly, have to realize two things,” the billionaire hedge fund manager said in a morning interview with CNBC. “First, cash is not a safe investment, it’s not a safe place. Because it will be taxed by inflation. It will not be an interest rate that will anywhere near compensate. And it seems it’s not volatile, but you’re paying a tax of a few percent a year on that…so stay out of that.”

The U.S. inflation rate hit a 30-year high in October, leading Federal Reserve Chairman Jerome Powell to tell lawmakers on Monday that he wanted to ditch the term “transitory” in describing it. Experts have indicated the rate is likely to remain near record highs until at least 2024.

Dalio advised investors to diversify their portfolios in his second tidbit of wisdom. “Wealth is not destroyed as much as it is transferred, and if you know how to balance those investments…that’s the most important thing,” he said. “Being in a safe, well-balanced portfolio, you can reduce your risk without reducing your return.”

Watch above via CNBC.

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Donovan Larsen

Donovan is a columnist and associate editor at the Dark News. He has written on everything from the politics to diversity issues in the workplace.

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