Dalio Says Investors ‘Crazy’ to Hold Government Bonds Now
- Questions why debt would appeal when money is being printed
- Thinks Fed has ‘no choice’ but to spend trillions of dollars
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Bridgewater Associates’ Ray Dalio, founder of of the world’s largest hedge fund, said investors would be “crazy” to hold government bonds now and possibly for years because of money-printing by central banks to rescue the global economy.
“This period, like the 1930-45 period, is a period in which I think you’d be pretty crazy to hold bonds,” Dalio said Wednesday on the Bloomberg Invest Talks webcast. “If you’re holding a bond that gives you no interest rate, or a negative interest rate, and they’re producing a lot of currency and you’re going to receive that, why would you hold that bond?”