Ray Dalio says he no longer thinks cash is trash

Cash used to be trashy. Cash is pretty attractive now. It is attractive in relation to bonds. It is attractive in relation to stocks. Ray Dalio, founder of Bridgewater Associates, no longer thinks cash is trash. In fact, just the opposite.

Over the past year, cash has become pretty attractive relative to both stocks and bonds, the famed hedge-fund manager said during a Thursday interview with CNBC.

While bonds might offer investors a higher yield, swollen public sector debts in the U.S. and Japan and negative real yields have made debt securities less appealing, Dalio said.

That was a big shift from last May, when Dalio said cash was still trash but that stocks were trashier as the 2022 market meltdown got underway. In October, Dalio tweeted that he had changed his mind about cash, and now viewed it as neutral. Dalio has been associated with the cash is trash line after using it in several interviews dating back to at least 2019. The valuations of stocks and bonds were boosted by rock-bottom interest rates back in the day.

Dalio said during the cable-news interview that the price of bitcoin BTCUSD has rebounded since the beginning of the year.

He said that you are going to see the development of coins that you haven't seen that will be attractive, viable coins, but I don't think thatBitcoin is it.

The billionaire recently stepped back from day-to- day management at Bridgewater Associates, the pioneering hedge fund he built into the world's largest in terms of assets under management.

Bridgewater has promoted Karen Karniol-Tambour to the position of co- chief investment officer, along with Bob Prince and Greg Jensen.