Billionaire investor Ray Dalio fears for the dollar and the “strength of our money,” and here is why

Gold is rebounding earlier in the week as tensions between the United States and China and fears of the coronavirus mount, but the dollar continues to decline.

The precious metal hit a new record on Monday, like GC gold futures,
it rose $ 39.60, or 2.1%, to $ 1,937.20 an ounce. Beijing retaliated on Friday after the United States ordered the closure of its consulate in Houston. China responded by returning the order to the United States to close its own consulate in Chengdu. The dispute between the world’s two largest economies spooked investors, but those concerns were scrapped a little early on Monday before a week of gains. YM00 US Stock Futures,
+ 0.30%
+ 0.42%
+ 0.84%
He moved cautiously higher.

However, the DXY dollar,
it fell to its lowest level in almost two years.

In our call of the dayBillionaire investor Ray Dalio warned that the conflict between the United States and China could turn into a “capital war” that would harm the US dollar.

“There is a trade war, there is a technological war, there is a geopolitical war and there could be a capital war, that is the reality,” Dalio said in Fox’s “Sunday Morning Futures”. “If you say by law, don’t invest in China or not even withhold the payment of the bonds that the United States must pay in China, these things are possibilities and have great implications, such as the value of the dollar because pre-marketing investors are not used to having those things dictated by the government “, said. The founder of Bridgewater Associates added that these difficult questions had to be “well addressed” and that it was challenging for the government to get the policy right. The hedge fund firm laid off several dozen employees across the company this month.

The US dollar has fallen in recent months: The ICE index of the US dollar, which measures the currency against a basket of six rivals, hit a 22-month low on Friday and fell again on Monday. On March 22, the index reached an intraday high of over three years.

When asked if he was concerned about the dollar, Dalio warned that the United States was his “worst enemy” and that he was concerned about the “solidity of our money.”

“You cannot continue to run a deficit, sell debt or print money instead of being productive and keeping it for a period of time.

“If we don’t work together to do things right, to be productive, to earn more than we spend, to build the stability of our currency and build a good balance sheet, we will decline,” he added.

Dalio’s hedge fund firm laid off several dozen employees across the company this month.

The graphic


Gold prices hit record levels on Monday as the safe haven asset continued to attract investors. This BDSwiss chart shows that gold has even outperformed negative yield bonds in recent months, a relationship in which the precious metal has typically been lower in the past four years.

The markets

After closing 0.7% lower on Friday, the Dow Jones Industrial Average DJIA,
It looked ready to open higher on Monday. US stock futures rose before a big week of gains as investors pushed aside mounting tensions between Washington and Beijing for now. Dow futures were up 0.2%, or 64 points, S&P 500 futures were up 0.4%, and Nasdaq futures were 0.8% higher. European stocks regained ground after previous losses, with the Stoxx 600 SXXP index,
It fell 0.5% in the first operations. The German DAX DAX,
was flat, whereas the French CAC PX1,
fell 0.4%. Asian markets ADOW,
+ 0.55%
They also mixed overnight.

The buzz

Big Tech will be in the spotlight this week, as Google’s father, Alphabet GOOG,
-0.25%, AMZN,
+ 0.74%,
Apple AAPL,
and Facebook FB,
all report earnings in the 24 hour space on Wednesdays and Thursdays.

Modern MRNA stock,
It increased 10% in pre-market trade, as the company said the Phase 3 trial for its Covid-19 vaccine candidate had begun.

The UK government put Spain on its insecure list again on Sunday, and other European countries warned against travel to the country when hot spots of the coronavirus emerged. Travelers arriving in the UK from Spain must now be quarantined for 14 days.

Low cost airline Ryanair RY4C,
it was reduced to a first quarter net loss of $ 215 million due to the impact of the coronavirus pandemic.

Software giant SAP SAP,
+ 2.11%
announced plans Sunday to go public with its Qualtrics cloud software business through an initial public offering. The German company bought Qualtrics for around $ 8 billion in 2018.

Random readings

The fascinating animation reveals that the entire solar system does not exactly orbit the sun.

Fast food ads will be banned on UK television before 9pm

Need to Know starts early and updates until the opening bell, but register here to receive it once in your email box. Be sure to check the item you need to know. The email version will ship at approximately 7:30 am EST.

Follow MarketWatch on Twitter, Instagram, Facebook.