Ray Dalio-Collapse of the US Dollar

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Ray Dalio-Collapse of the US Dollar

Frank Gamez
Member since 2018 · 23 posts · 8 votes

I should start by saying that I am not an economist at all but for this same reason is that I feel the need to educate/inform myself on what other really smart people are saying about the US economy. Back in 2016 I purchased my house for $65K from a probate. At the time the house was appraised for $110k. It is now worth $160K through forced and natural appreciation. My plan was to sell it by the end of 2020 and wait for the housing market to crash or at least soften up a bit. I was basing my strategy off of J. Scott's recommendation to save up cash because everyone knows that "cash is king" during a down turn right? BUT what if this down-turn is no ordinary down turn like billionaire Ray Dalio is preaching??? Ray Dalio is saying that actually, "cash is trash" because what is coming is not merely a market crash or a housing market crash, what is coming is the collapse of the US DOLLAR. I'd love to hear everyone else's thoughts on this and what implications a devaluation in currency has on the housing market?

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  • Adam Young
    New to Real Estate · Laguna Beach, CA · Member since 2020 · 15 posts · 6 votes
    6y

    I don't believe Ray Dalio is saying cash is trash due to a collapse of the dollar (which, could quite well happen in the very near future). I think he is referring to holding cash during a time when some form of inflation seems inevitable. He also thinks the same way for the bond market seeing as the returns are likely once again to be beaten by inflation. 

    I'd maybe go as far to say smart money is rushing to commodities (gold hitting its peak last reached in 2011), real estate and the stock market where any company with cash (AMZN, Apple etc) are insanely valued right now compared to higher leveraged companies even if they are usually safe havens (AT&T, VZ). I'm raising more cash and not buying any more stocks until they come back from the moon. And if the market trades sideways from here for a year, the cash I have raised I will utilize in real estate. 

    The economy is hurting and it is going to take a few month to get out of the muddy water and see how bad the devastation could turn out. If it isn't the high unemployment numbers, the eviction notices, the unpaid mortgages... we may just end up waiting for the trade war. 

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  • Bill B.
    Investor · Las Vegas, NV · Member since 2013 · 8k+ posts · 10k+ votes
    6y

    So if a collapse fo the dollar is coming you’re buying every house you can today right? For at least four years kiosaki and a bunch of other experts have been predicting the collapse of the dollar and hyper inflation. If you took their advice you’ve lost your shirt, and they’re geniuses. 

    They were also pushing gold, but as Adam said above, gold has gone no where in 8 years. Talk about lost time and money. I think he’s also right that his align “trash is cash” is the less than inflation rate return on cash. If you believe in the crash of the dollar or hyperinflation, buy real estate today and ride the wave. I personally don’t see it and I’m not psyched that the experts who I’m sure will run laps patting themselves on their back if they are eve rigth haven’t apologized or at least admitted how wrong they’ve been. 

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