Ray Dalio Busts A Rhyme In Davos

Ray Dalio is in Davos (obviously), where the founder of the World Economic Conference is still insisting that it’s all about bringing people together in spite of not only having Donald Trump as his guest, but having Donald Trump use his platform to distract attention from his pro-forma impeachment trial, to take further shots at the Federal Reserve and explicitly call for non-unity, while having the assembled globalists eat it up. As for Dalio, he’s gone to (the other) Burning Man for plutocrats to deliver a message so pithy and precise that it might as well be a brand-new Principle.

“Cash is trash,” Dalio said. “Get out of cash. There’s still a lot of money in cash.”

And do you know what else is trash?

“There’s two purposes of money, a medium of exchange and a store hold of wealth, and bitcoin is not effective in either of those cases now,” he said.

OK, so you’re taking some of your cash and you’re not buying bitcoins with it. So, uh, what are you buying with it? Well, lots of stuff, including some shiny stuff, echoing his number two.

“You have to have balance … and I think you have to have a certain amount of gold in your portfolio,” Dalio said, reiterating his call last year that the precious metal will be a top investment in the years to come…. Dalio doesn’t think there will be an economic downturn this year and he said investors should look beyond the 2020 U.S. presidential election.

On that point, Dalio’s backed up by the occasionally innumerate International Monetary Fund.

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