CASH IS TRASH - says the Founder of world’s largest hedge fund

[Gediminas]

What do you think about cash these days? I know some forum members would suggest storing it, some wouldn't.

I have an obvious answer for myself - work it, use it, enjoy it. Because I am not afraid to lose and gain again.

Would you rather keep it in under the pillow?

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If there are investors who believe cash is king amid this market bull run, they ought to think again, suggests Ray Dalio.

The billionaire founder of the hedge fund Bridgewater Associates said during a CNBC interview on Tuesday on the sidelines of the World Economic Forum in Davos, Switzerland, that investors should be buying this market, rather than seeking safety in cash.

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https://www.marketwatch.com/story/f...-trash-as-the-dow-soars-to-records-2020-01-21

 

[Tax Cow]

Dalio is the one to benefit from further market hikes as he, as opposed to Buffet and others, still isn't scaling down US equity allocations. Understandably, every slut praises her cunt. I remain optimistic that he'll find a dumbass EU pension fund manager at Davos who faps to his arguments, so he can toss the bag before it starts to burn.

As for the cash argument, I think he also meant digital cash, not just paper. So he's just condemning value investors who don't want to take a ride at absurd PE ratios.

Physical cash is a very practical thing. If not for anything else, then for buying Viagra anonymously. Up to 5% of personal portfolio in physical bank notes isn't a bad idea. Never know when the ATMs go on a strike!

 

[Gediminas]

Yeh, I had similar feelings about his intentions with this statement.

If not for anything else, then for buying Viagra anonymously.

You made my day, man.

 

[Martin Everson]

So Ray Dalio the 1% says this. His another clown that is talking up his book . The market is undergoing a "melt up" and his out here telling people to buy into a HUGELY overvalued market...lol....good luck.

I guess he out there having to cheer-lead the stock market after his Pure Alpha II Fund made a loss for the first time since 2000.

 

[Gediminas]

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The rocket fuel that has propelled markets in 2019 will run out," Seth Klarman wrote in his annual letter to investors last week, according to Bloomberg, which reviewed a copy.
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Just like you say, Martin

https://markets.businessinsider.com...rket-end-hoards-cash-letter-2020-1-1028837041

 

[KJK]

I don't know what to think about Seth Klarman.

2010: Baupost's Klarman sees poor outlook for stocks. Klarman sees no gains for stocks this decade
2014: Seth Klarman Says Markets Are Too Bubbly
2015: Klarman's Baupost fund posts 2015 losses due to energy firms
2016: Seth Klarman Blames Market, Investments for Rare Down Year
2017: Seth Klarman: Raising The Warning Flag On Index Fund Valuations
2018: Seth Klarman Has Concerns About Indexing.
2019: Billionaire hedge fund manager Klarman issues dire warning on global economy
2020: Hedge fund giant Seth Klarman says the ‘rocket fuel’ feeding this rally will soon ‘run out’

However after all he's a billionaire so what do I know...

Ray Dalio is a very very smart guy, he understands the macroeconomics, the cycles, he is surprisingly quiet about China by the way. However even if you understand all this, it doesn't mean your understanding will be more decisive than Fed/Trump/central banks. The show can go on longer than he may think.

 

[hernanday]

Cash is not a good investment typically just for making a return unless you are holding a very strong currency. Cash protects you from all kinds of other risk such as failing banks (USA), failing electricity(Syria), failing country(Syria), negative interest rates (Denmark), taxes on bank deposits (Spain), bail-ins(Cyrpus), forced spending of your bank deposits (Greece).

 

[Martin Everson]

The golden rule is that whatever the 1% like Ray Dalio tell you to do with your money then do the opposite and you will never go wrong. They only ever serve themselves and talk up their own trading book.

 

[rainman101]

Never listen to anyone. See what they actually do instead.
One guru says up...one says flat..one aays down.
No one knows.