Legfinishary investor Ray Dalio said the overdue recovery would be a “significant negative for the economy” following President Trump’s resolve to suspend negotiations for an agreement until the end of the election.
“It’s a lot of money, anything,” Dalio said in an interview with CNBC on Wednesday. Lawmakers were negotiating a plan that could have provided between $1. 6 trillion and $2. 4 trillion in aid. Dalio said the lack of stimulus would cause “a lot of stress” in those who would possibly not receive the money. “
Bridgewater Associates founder also said he agreed with Federal Reserve Chairman Jerome Powell, who said Tuesday morning that not approving a timely stimulus could lead to a “weak recovery” of the economy.
Fed and fiscal monetary funds are needed in the form of a stimulus for the economic recovery, Dalio said. The Fed is helping money markets, “but it doesn’t do the right thing in terms of income, expenses and specific cash to put them in the hands of those who love it most. “
According to Dalio, the most investors can do in this “particularly difficult period” is to diversify their portfolios by country, asset and currency categories, and avoid liquidity. “It has less volatility and because we look at everything through the prism of money. “”the investor said. ” But he doesn’t realize that when there’s so much money production and so much debt production, that hurts compared to other asset categories. “This is not a safe investment. Array. . . diversification is much greater than liquidity,” he added.