Hedge Fund Titan Ray Dalio just weighed in on Bitcoin and Gold, and one of the camps will be very angry, and it’s not the goldbugs…
Where is Bridgewater’s Ray Dalio, a man worth nearly $17 Billion, turning for the best investments right now? Precious Metals & Industrial Commodities.
Dalio is officially bearish on stocks, and he has now changed his tune towards a severe depression outlook in the major indices. Dalio warns investors “who don’t own gold don’t know history or economics…”
After the 2008 collapse of Lehman Brothers, Ray Dalio immediately recognized that the Federal Reserve would have to print trillions of dollars to bail out the system… so he positioned his firm for big profits, buying assets like gold and foreign currencies. Dalio was right.
Now Dalio has a NEW Warning for anyone who’s willing to listen:
Ray Dalio, founder of the $160 billion investment firm Bridgewater Associates, was invited to speak at the Federal Reserve Bank of New York’s 40th Annual Central Banking Seminar yesterday.
Rather than gush about how wonderful the Fed’s zero interest rate policies have been since the financial crisis, Dalio gave them a fire hose of reality:
In a rare CNBC panel appearance with Bridgewater’s Ray Dalio (a strong proponent of gold) former Treasury Secy Timmy Geithner claimed “central banks aren’t out of ammunition”.
Is Gold Revaluation Next?
And it’s not what you expect…
Ray Dalio, founder and co-chief investment officer of Bridgewater Associates, L.P. and one of the most successful hedge fund managers of all time told Maria Bartiromo last week that he owns gold and that he sees no “sensible reason not to own gold”. The interview was part of the Council on Foreign Relations (CFR) Corporate Program’s CEO Speaker Series, which provides a forum for leading global CEOs to share their priorities and insights before a high-level audience of wealthy and influential CFR members. The respected hedge fund manager suggested that a depression and not a recession was likely and warned of social unrest and the risk of radical politics as was seen with Hitler and the Nazis in the Depression of the 1930’s. Dalio spoke about how “gold is a currency” and when asked by Bartiromo “do you own gold?”, he smiled and said “Oh yeah, I do.” The admission elicited a laugh from the CFR audience. Dalio’s interview is important as it again indicates how slowly but surely gold is moving from a fringe asset of a few hard money advocates and risk averse individuals to a mainstream asset. Wealthier people and some of the wealthiest and most influential people in the world are slowly realizing the importance of gold as financial insurance in an investment portfolio and as money. This will result in sizable flows into the gold market in the coming months which should push prices above the inflation adjusted high of 1980 – $2,500/oz.