Billionaire Ray Dalio Shuns Bonds, Embraces Cash: What's Behind His Strategy?
Portfolio Pulse from Piero Cingari
Ray Dalio, founder of Bridgewater Associates LP, has expressed his preference for cash over bonds due to the growing complexity of the global financial landscape and the threat of inflation. He noted that cash-like instruments, particularly ETFs linked to Treasury bills or short-dated Treasury bonds, are seeing a surge in demand. The SPDR Bloomberg 1-3 Month T-Bill ETF (BIL) and the iShares Trust 0-3 Month Treasury Bond ETF (SGOV) have seen significant inflows this month.

September 14, 2023 | 8:35 pm
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POSITIVE IMPACT
The SPDR Bloomberg 1-3 Month T-Bill ETF (BIL) has seen a significant inflow of $2 billion this month, indicating a strong demand for cash-like instruments.
Ray Dalio's preference for cash over bonds and the surge in demand for cash-like instruments, particularly ETFs linked to Treasury bills, is likely to positively impact the short-term price of BIL.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 90
POSITIVE IMPACT
The iShares Trust 0-3 Month Treasury Bond ETF (SGOV) has attracted $1.7 billion this month, indicating a strong demand for cash-like instruments.
Ray Dalio's preference for cash over bonds and the surge in demand for cash-like instruments, particularly ETFs linked to short-dated Treasury bonds, is likely to positively impact the short-term price of SGOV.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 90