Billionaire Investor Ray Dalio was a Warning from STTT as to the postability of a drop in interest rates of the Fed.
According to Dalio, a decrease in state rates has led to depryuclation of the dollar and a drop in equity prices.
Speaking during a Reddit question / response session, Dalio said: “If the Fed reduces interest rates, short -term rates and the dollar will weaken, while long -term rates will increase, which reveals the yield curve.” He added that in this situation, the actions of Could allow to harm, as expected, because of the weakening of the confidence of investors and the staging.
Which is the postbible of a drop in interest rate of 0.25 points in Septmber is important on the markets, the main registrations such as Bank of America predict at least two additional rate decreases this year and an expansionary policy that will last until 2026.
Dalio also highlights long -term economic risks. He noted that the Usal debt, you received 37 billions of dollars and is equivalent to 124% of GDP, is the highest level of worldwide worldwide. Dalio, who completely liked the American debt Profilem to “the accounting of the plate in the veins” and the economy to “a ship that draws tugs on the rocks”, “predicted that the country counter is faced with a crisis linked to debt with the next three years.
Declaring that obligations in dollars and Americans can weaken due to the increasing budget deficit, the increase in borrowing costs and financial indiscipline, Dalio wanted 15% of portfolios to be aligned with alternative assets such as gold and Bitcoin.
Dalio made the following statement in his Bitcoin assessment:
Bitcoin is now an alternative currency with a limited offer. If the dollars supply increases or demand decreases, cryptocurrencies have an attractive alternative. Howver, Bitcoin always has its drawbacks: it can be monitored and potentially controlled by governments, and its programming can be broken by new texts. Therefore, it is unlikely that it will become a reserve currency. Gold, on the other hand, has a stronger position in its long history and its outfit as booking by daring. This is what I hold a small amount of bitcoin but much more gold. The most important thing is to have alternative currencies to protect wealth, because most fiduciary currencies with important debts will lose their value against hard currencies.
* These are not impact advice.