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In order to hopefully get our idiot gov to correct its course. If ya wait until there is a crisis on the doorstep it's suddenly too late to correct course.Yes I saw this.
It raises the question as to why preach doom now ?
Again, the point is to do something before there's a crisis.Well we are at the two year mark from Ray Dalio's original dollar crisis prediction. The dollar is facing challenges, but I'm not sure we are at crisis yet.
They are still doing it. It's because even they can see the writing on the wall.@Joe King - I agree with your point on the reason for sounding alarms. It totally makes sense coming from a high profile individual such as Ray Dalio. My comment - the first quote in your post - was from ~5 years ago (before Covid) and was addressing the point that the doomer rhetoric was coming from the IMF which is largely an organ of the Fed/US Treasury/US Gov. They have historically provided sober analysis of 3rd world countries' fiscal/monetary situations ("you're fucked and need our help"), but not so much on the USA.
Diversification is even more important to investors’ returns than making the right decisions, and gold is a key diversifier, according to Ray Dalio, the billionaire founder of Bridgewater Associates.
In a remote video speech to the Greenwich Economic Forum in Hong Kong on Wednesday, Dalio went through some of what he considered the most pressing economic and geopolitical threats on the horizon.
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Turning to the topic of asset classes, Dalio said he prefers equity assets over debt, as he worried about the latter failing to provide adequate returns. Central banks own a lot of debt and are currently sitting on losses that they may have to monetize, which he called a classic late-cycle inflationary consequence.
Dalio also insisted that gold should be in every investor’s portfolio, as it is the third-largest reserve currency, trailing only the U.S. dollar and the euro.
“The power of diversification is greater than the power of even good decision-making,” he said.
Speaking on the Finimize podcast on June 1, Dalio expanded on his position relating to gold, saying that it plays a key role in his approach to risk, particularly when too much money is betting on continued gains in equities.
“If you're going to diversify, I suspect that most of your investors have probably a disproportionate amount of investment being long in the stock market,” he told host Gilberto Santos. “You know, always being on one side of the market, and always being in one market, is a risky thing. I would have a bit of gold.”
“A bit of gold is something that is a very effective diversifier,” he continued, “so actually adding gold to the portfolio raises its expected return without depending on the particular assets held in the portfolio, but it diversifies. It's almost a bit of an insurance policy.”
They're technically the same thing, with the difference being that a US bond for a dollar is a dollar that pays interest, while a dollar in cash does not.It's not the dollar as much as it's government bonds from USA and UK. They are worth anything once the music stops.
The bond doesn't pay interest. The bond ISSUER pays the interest.They're technically the same thing, with the difference being that a US bond for a dollar is a dollar that pays interest, while a dollar in cash does not.
To the holder, it's the same as holding a dollar that pays them interest.The bond doesn't pay interest. The bond ISSUER pays the interest
We'll have to cross that bridge when it happens. Until then, a $1 bond is like holding $1 bill that pays interest.Does it pay the interest if it is in default
Well yea, but that hasn't exactly happened yet, has it?If the dollar collapses from CTRL+PRNT, will the interest it pays, be worth anything
A postelection America worries U.S. billionaire Ray Dalio, who called for reforms numerous times amid a political landscape rife with what he views as irreconcilable differences between both Democratic and Republican parties.
Speaking at the Future Investment Initiative conference in Saudi Arabia on Wednesday, the founder of the investment firm Bridgewater Associates spoke about major geopolitical and election-related concerns, the issue of rising U.S. deficit and how investors can best position their portfolios.
“Both of the candidates worry me,” Dalio told CNBC. “This left, right and fighting each other is a problem as it becomes more of the extremes. I think there needs to be a bringing of Americans together, that middle of that, and making great reforms. … There needs to be a strong leader of the middle, I believe, that makes great reforms. … Neither of the candidates does that for me.”
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“We have a real debt problem. … I think one man’s debts is another man’s assets,” Dalio said. “Treasury market is basis of all capital formation. At some point, when you combine it with the internal conflict issue, if you have a downturn — when the downturn comes — I’m worried about internal political and social conflict.”
When positioning one’s portfolio, the famed investor said gold should be part of a diversified and balanced strategy that reduces overall risk.
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