No one ever thinks about counterparty risk until it becomes a problem… and by then it’s too late.
But counterparty risk becomes a BIG deal, and QUICKLY, when the system stops functioning normally…

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:

gold-jacksonMost of the world is in an uproar right now over the travel ban that Donald Trump hastily imposed late last week on citizens of seven predominantly Muslim countries.
But there was another ban that was quietly proposed last week, and this one has FAR WIDER IMPLICATIONS: A Ban On Cash:

cliff-edge-fallThe old saying in investing is “Buy Low, Sell High.”
It also works the other way: “Sell High, Buy Low.”
And that is precisely the opportunity right now: to SELL overvalued US dollars at their 14-year high, and BUY top quality, undervalued foreign assets at their record lows.

cliff-fallIt’s not the fact that the Dow hit 20,000 that makes US stocks so expensive. The price of a stock alone doesn’t tell you much.
It’s important to look at the price of the stock relative to other important metrics, like cash flow, book value, sales, earnings, etc.
US stocks right now are selling at the HIGHEST price-to-sales ratio in at least 15 years, and far higher than it was before the 2008 crash:

cashNobel Laureate economist Joseph Stiglitz made remarks earlier this week that the US should “get rid of currency.”
He means paper currency, as in the US should not only get rid of $100 bills… but ALL paper currency– 50s, 20s, 10s, 5s, and even 1s.
You guessed it.  Stiglitz suggests that regular people don’t need paper money, and that it’s only useful for drug dealers, terrorists, tax evaders, and money launders.