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Tags: ray dalio | cash | trump | bull market

Ray Dalio: 'Holding Cash Pretty Stupid' as Trump Bull Market Rages


Tuesday, 23 January 2018 11:22 AM EST

Economic guru Ray Dalio advises savvy investors that the seemingly endless Trump bull-run stock-market rally is only seeing more red and will continue to charge deeper into record territory.

The Bridgewater Associates founder predicts the Trump tax cut could lead to some big gains for the U.S. stock market.

"We are in this Goldilocks period right now. Inflation isn't a problem. Growth is good, everything is pretty good with a big jolt of stimulation coming from changes in tax laws," Dalio told CNBC.

Dalio predicts we will see "a market blow-off" rally, fueled by cash from banks, corporations and investors.

"There is a lot of cash on the sidelines. ... We're going to be inundated with cash," he said. "If you're holding cash, you're going to feel pretty stupid."

S&P 500 is up 25 percent in the past 12 months, CNBC.com reported.

To be sure, Wall Street’s main indexes were higher in morning trading on Tuesday as upbeat results from Netflix, Travelers outweighed concerns of the potential impact of President Donald Trump’s decision to impose steep import tariffs.

South Korea and China protested against Trump’s move to impose import tariffs on washing machines and solar panels, with Seoul saying it would respond to the spread of protectionist measures.

“We don’t know if this is the beginning of something larger or if it’s something that will escalate into a trade war,” Art Hogan, chief market strategist at B. Riley FBR in Boston, told Reuters.

Hogan also said it sparked fears about U.S. walking away from NAFTA.

NAFTA’s future hangs in the balance this week as negotiators from the United States, Canada and Mexico try to settle major differences over revamping a pact that Trump has threatened to abandon.

For his part, Trump says the mainstream liberal media twists the facts and distorts reality.

"Do you notice the Fake News Mainstream Media never likes covering the great and record setting economic news, but rather talks about anything negative or that can be turned into the negative. The Russian Collusion Hoax is dead, except as it pertains to the Dems. Public gets it!" the president recently tweeted.

(Newsmax wire services contributed to this report).

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Bridgewater Associates founder Ray Dalio says an even higher market surge may be ahead: "If you're holding cash, you're going to feel pretty stupid."
ray dalio, cash, trump, bull market
Tuesday, 23 January 2018 11:22 AM
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