Ray Dalio warns this major asset will have the ‘worst return’ guaranteed — and you probably own a lot of it

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Americans often crook to 1 peculiar plus erstwhile they privation security, stableness and extortion from marketplace volatility. But billionaire capitalist Ray Dalio says that consciousness of information whitethorn beryllium dangerously misleading.

The plus is currency — including wealth held successful savings accounts and different short-term, interest-bearing vehicles.

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During a caller quality connected The Diary of a CEO podcast (1), Dalio called currency the "worst" semipermanent investment.

"People deliberation that that's the safest. It's not," the Bridgewater Associates laminitis said. "It's the worst concern implicit a agelong play of clip due to the fact that ostentation volition devour it away."

Dalio clarified that helium was not talking lone astir carnal bills sitting successful a drawer. His explanation included currency held "in immoderate signifier — a wealth marketplace fund, immoderate it is that is that short-term, 'I'll deposit it and it'll springiness maine an involvement rate.'"

Earning involvement is surely amended than letting carnal currency beryllium idle. But Dalio does not judge it is capable — acold from it.

Cash "has the lowest return, guaranteed astir to person the worst instrumentality implicit the longer play of time," helium said bluntly.

When big Steven Bartlett noted that radical support currency due to the fact that it feels safer, Dalio responded: "That's right. And I'm saying it's not safer due to the fact that of inflation."

Protect your wealthiness from inflation's wound

Dalio's informing yet comes down to purchasing powerfulness — oregon however overmuch your wealth tin really buy.

He explained that if his currency earned nary interest, helium would simply "lose to the ostentation rate," which helium estimated was moving astatine astir 3.5% to 4%.

Dalio's champion conjecture intimately reflects the latest authoritative reading. The U.S. Consumer Price Index roseate 3.5% betwixt June 2025 and June 2026, according to the Bureau of Labor Statistics (2).

An interest-bearing relationship tin offset immoderate of that damage. But Dalio noted that the advertised output does not archer the full story.

"Now I'll get an involvement complaint connected it if I enactment it someplace, and it'll springiness maine possibly an involvement complaint that's determination successful that vicinity, akin to that — and past I person to wage taxes connected it," helium said.