Cash is no longer trash, says Dalio, who calls it more attractive than stocks and bonds

MarketWatch/Joseph Adinolfi/2-2-2023

“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., Europe and Japan and negative real yields have made debt securities less appealing, Dalio said.”

USAGOLD note: Investor cash holdings are approaching record highs, according to the Investment Company Institute……Cash, though, remains vulnerable to inflation. Even at a 4.5% yield, the investor is still losing money if the inflation rate stays at 6.5% or goes higher.