(Bloomberg) — Bridgewater Associates LP founder Ray Dalio says he doesn’t want to own bonds and prefers cash, highlighting the problems facing investors as global central banks try to control inflation.
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“You know, I don’t want to be in debt,” the billionaire said Thursday at the 10th Milken Institute Asia Summit in Singapore when asked to tip the hat of a hot macro investor to the current landscape. . “For now, I think money is good.”
Asked how to tackle the world’s high debt, he said the situation is “getting worse and faster” as debt continues to dominate the economy and interest payments continue to rise. “We’re at that change of pace.”
While the deficit would require the United States to sell more bonds to investors around the world, it would be difficult to keep interest rates at a level attractive to lenders, but not too high to hurt issuers, Dalio said. They added that when investors choose to sell, by increasing output, the central bank should decide to print money and buy bonds, which will increase inflation.
“We’re seeing this dynamic happen now,” Dalio said. “I personally believe that bonds, long term, are not a good investment.”
Later in the conference, when asked for advice on how to deploy capital as a new entrant, Dalio stressed the need to diversify, pay attention to disruptions, and select those that can make the best use of new technologies.
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