Ray Dalio, the founder of the firm, believes that cash is not the best place to be in the current market.
The founder of the world's biggest hedge fund said on CNBC's "Squawk Box" that cash is not a safe investment because it will be taxed by inflation.
The billionaire investor said it was important to be in a balanced portfolio during times of turmoil.
You can reduce your risk without reducing your returns. You won't market-time this. The things that are happening can change the world, so it changes what could be priced into the market.
The World Health Organization labeled the omicron Covid strain a "variant of concern" on Black Friday, causing the stock market to plunge. Stock futures indicated a big down day after Wall Street rebounded on Monday.
The stock market rebounded from the bottom in March 2020 thanks to the massive fiscal and monetaryStimulus that the government and the Federal Reserve orchestrated to support the economy. The excess money supply could cause some economic and political problems.
Raising the amount of money in credit in the system is not enough to raise living standards because it is just more money chasing the same amount of goods. It will affect the financial markets and the inflation rate. Living standards won't be raised in an important way. Inflation has political consequences when it starts to bite.
A key inflation gauge spiked in October, its fastest pace since the early 1990s, a measure closely followed by Fed policymakers.
Inflation has been more aggressive and persistent than the central bank anticipated. The officials believe that inflation is at a point where they can start to reduce the amount of monthlyStimulus they are providing through bond purchases.
It is like watching the movie over again, as we are seeing happen many, many times in history.
