Ray Dalio: flood of money threatens its value

We are seeing a flood of money and credit that, while lifting asset prices, will undermine the value of that money, says Ray Dalio, founder of Bridgewater Associates.

“We are in a flood of money and credit that is lifting most asset prices,” says Ray Dalio, founder and co-chief investment officer of Bridgewater Associates, the world’s biggest hedge fund. Indeed, with interest rates at rock bottom as they are today, “there’s no good reason that stocks couldn’t trade at 50 times earnings”.

But there’s a downside. Speaking to viewers of an “Ask Me Anything” session on social-media website Reddit last week, Dalio warns that the scale of the flood is also “threatening to the value of our money and credit”. As a result, it’s more crucial than ever to diversify. “Put your savings into a well-diversified mix of currencies, countries and asset classes so that your savings will not depreciate in value.“

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Dominic Frisby

Dominic Frisby (“mercurially witty” – the Spectator) is as far as we know the world’s only financial writer and comedian. He is the author of the popular newsletter the Flying Frisby and is MoneyWeek’s main commentator on gold, commodities, currencies and cryptocurrencies. He has also taken several of his shows to the Edinburgh Festival Fringe.

His books are Daylight Robbery - How Tax Changed our Past and Will Shape our Future; Bitcoin: the Future of Money? and Life After the State - Why We Don't Need Government

Dominic was educated at St Paul's School, Manchester University and the Webber-Douglas Academy Of Dramatic Art. You can follow him on X @dominicfrisby