Bridgewater Associates founder Ray Dalio is no longer insisting that “cash is trash.”
The Westport-based hedge fund executive announced his change of mind via Twitter, citing a legendary English economist as the justification of his new mind frame.
“As John Maynard Keynes is credited with saying: “When the facts change, I change my mind. What do you do, sir?” Dalio tweeted. “Along these lines, the facts have changed and I”™ve changed my mind about cash as an asset: I no longer think cash is trash.”
Dalio also weighed in on the Federal Reserve”™s recent policy actions, tweeting, “At existing interest rates and with the Fed shrinking the balance sheet, it is now about neutral ”“ neither a very good or very bad deal. In other words, the short-term interest rate is now about right.”
Dalio did not elaborate on what specifically encouraged him to change his opinions.
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