The 'king of hedge funds' had a bad year.
The person is Kim White/Getty Images.
Ray Dalio warned people against trying to time the market as uncertainty about the Omicron coronaviruses shakes stocks.
The most important thing for investors is to have a balanced portfolio and not try to be too smart, according to billionaire investor Ray Dalio.
You will not market-time this. He told CNBC's Andrew Ross Sorkin that the things that are happening can change the world and change what should be priced into the markets.
The discovery of a new coronaviruses variant, called Omicron, has triggered volatility in stocks after a placid period for the market.
The US benchmark S&P 500 index dropped 1.9% on Tuesday after Moderna's CEO said existing vaccines were unlikely to be as effective against the new virus strain.
Scientists are trying to find out more about Omicron. In the meantime, investors are left to guess about the economic impacts. Many analysts said that the US stock market's fundamentals are sound.
Jean Bovin, head of the Blackrock Investment Institute, said in a note this week that they stay invested as a new virus strain and European COVID surge are hurting risk sentiment. Delaying the powerful restart means more later.
The founder and co-chief investment officer of the world's biggest hedge fund was not fond of those buying and selling around the volatility.
I'm going to time the movement in and out of the stock market. "You're going to guess what the next variant move is?" he asked.
The veteran investor told them to stay away from cash. "Cash is trash because of the erosion of its value by inflation," said Dalio.
He said that printing more money to buy bonds isn't going to make the economy more productive.
He said that raising the amount of money and credit in the system wouldn't raise living standards.
Diversification is important for investors in volatile times, according to Dalio. He said in an interview that he doesn't view being in cash as safe because of inflation.
You can have a diversified portfolio of assets.
The US is on the verge of an empire-ending catastrophe according to billionaire investor Ray Dalio. He's worried and how he says you should invest your money.
Business Insider has an original article.
