We’ll Let Billionaires Say It For Us!
Every now and then something worthwhile slips out at the World Economic Forum in Davos, Switzerland, an annual meeting of the world’s wealthy. We weren’t surprised that this year that it came from billionaire investor Ray Dalio since we ourselves have cited Dalio a few times here in these comments.
Dalio is the founder of the world’s largest hedge fund, Bridgewater Associates.
Tuesday during an on-location CNBC interview at the World Economic Forum, Dalio warned “Get out of cash,” and “Cash is trash.”
Once again, Dalio urged investors to own gold, just as he has done before. He has stated that gold will be his top investment for years to come. In the same Davos interview, he took a swipe a cyber-currencies. “There are 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.”
Just last week we quoted Greg Jensen, Bridgewater’s Co-Chief Investment Officer, who told the Financial Times that investors should make gold a cornerstone of their portfolios, as “most of the world is long equity markets in pretty extreme situations.”
Jensen pointed to rising geopolitical tensions, saying “There is so much boiling conflict.”
He talked about the precariousness of the dollar’s role as the global currency reserve. “When you look at the geopolitical strife, how many foreign entities really want to hold dollars? And what are they going to hold?” he asked. “Gold stands out.” (See “The World’s Largest Hedge Fund Says “Gold to Surge!” 1/16/20)
As long as we are letting billionaires speak for us today, here’s one more. David Einhorn is the founder of Greenlight Capital.
Here is how Einhorn explained why gold is one of his top positions: “The bipartisan consensus is that deficits don’t matter – it implies we can always print our way out of trouble. All told, we can count on aggressive fiscal and monetary policies in both good times and bad. Gold continues to be a hedge in our portfolio against adverse outcomes related to those policies.”
“I hold gold, and I am never going to get rid of it. I hope that I never have to use it,” Einhorn said last year.
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