Ray Dalio Says Diversify, Don't Hold Cash

The video discusses investment strategies, emphasizing the risks of holding cash due to inflation and low interest rates. It advises against investing in 10-year Treasury bonds and suggests diversifying investments across currencies, countries, and asset classes to mitigate risks and uncertainties.

What is the main risk associated with holding cash in the current investment climate?

• Currency devaluation

• High interest rates

• Loss of purchasing power due to inflation

• Increased market volatility

Why does the speaker suggest borrowing cash for investments?

• To avoid currency fluctuations

• To invest in assets with higher returns than zero interest rates

• To increase cash reserves

• To take advantage of low interest rates

What is a key strategy to protect against inflation according to the speaker?

• Buying government bonds

• Investing in real estate

• Holding cash

• Investing in assets that outpace inflation

What types of diversification does the speaker recommend?

• Geographic, demographic, and psychographic diversification

• Short-term, medium-term, and long-term diversification

• Industry, sector, and market diversification

• Currency, country, and asset class diversification

Why is diversification important according to the speaker?

• It maximizes tax benefits

• It simplifies investment decisions

• It reduces risks and uncertainties

• It increases potential returns