Billionaire Ray Dalio Thinks Real Estate Isn’t a Safe Investment, Says Stocks Could Underperform Even with Rate Cuts – Here’s Why

Billionaire Ray Dalio doesn’t always buy into conventional wisdom when it comes to investment choices.

Dalio, who founded the asset management firm Bridgewater Associates, participated in a Reddit ask-me-anything session on Thursday and was asked about his opinions on real estate investment.

The billionaire shot down the notion that buying property is a safe investment.

“Real estate is not a safe investment because it can’t be moved, so it can’t go with you, and it’s easy to tax because it can’t be moved, so it’s not the sort of asset that is best to hold in times of great change and when the government needs to get tax money.”

Dalio also predicts that stocks could underperform if inflation goes up and the Federal Reserve still cuts rates this month.

“I fear that short-term rates and the dollar will go down, especially relative to gold, long-term interest rates will rise a bit, so the yield curve will become steeper, and stocks will do relatively poorly despite the easing. If we see that kind of market action, it would reflect investors wanting to get out of debt assets and into other storeholds of wealth, and that the Fed is in a bind and the risk of stagflation is rising.”