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Ray Dalio says market surge may be ahead: 'If you're holding cash, you're going to feel pretty stupid'

Tae Kim
David A. Grogan | CNBC. Ray Dalio shares his market views on CNBC Tuesday from the World Economic Forum in Davos, Switzerland.

Bridgewater Associates founderRay Daliosaid the tax cut could lead to some big gains for the U.S. stock market.

"We are in this

Goldilocks

period right now. Inflation isn't a problem. Growth is good, everything is pretty good with a big jolt of stimulation coming from changes in tax laws," Dalio told CNBC Tuesday from the World Economic Forum in Davos, Switzerland.

The investor said we're in the late part of the cycle and predicts we will see "a market blow-off" rally, fueled by cash from banks, corporations and investors."There is a lot of cash on the sidelines. ... We're going to be inundated with cash," he said.

"If you're holding cash, you're going to feel pretty stupid."

Bridgewater is the world's largest hedge fund, managing about $160 billion, according to its website. Dalio started the firm in 1975 out of his two-bedroom apartment in New York City. He is now worth an estimated $17 billion, according to Forbes.

Bridgewater Associates founder

Ray Dalio

said the tax cut could lead to some big gains for the U.S. stock market.

"We are in this

Goldilocks

period right now. Inflation isn't a problem. Growth is good, everything is pretty good with a big jolt of stimulation coming from changes in tax laws," Dalio told CNBC Tuesday from the World Economic Forum in Davos, Switzerland.

The investor said we're in the late part of the cycle and predicts we will see "a market blow-off" rally, fueled by cash from banks, corporations and investors.

"There is a lot of cash on the sidelines. ... We're going to be inundated with cash," he said.

"If you're holding cash, you're going to feel pretty stupid."

Bridgewater is the world's largest hedge fund, managing about $160 billion, according to its website. Dalio started the firm in 1975 out of his two-bedroom apartment in New York City. He is now worth an estimated $17 billion, according to Forbes.



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