Billionaire investor Ray Dalio has identified Treasury Inflation-Protected Securities (TIPS) as one of the safest assets for investors seeking reliable returns in today’s uncertain markets.
Dalio, founder of Bridgewater Associates, emphasized that TIPS stand out because they are designed to guarantee a real return, automatically adjusting to protect against inflation.
In a September 24 post on X, the investor noted that unlike more speculative assets, which often pit traders against each other in what he described as a zero-sum game, TIPS offer stability and predictability.
By linking payouts to changes in consumer prices, the bonds safeguard purchasing power, making them particularly attractive during periods of inflation volatility.
Dalio’s preference for TIPS also puts focus to his cautious stance on speculative trading, which he believes leaves most participants at a disadvantage.
Dalio’s bearish stand on economy
His recommendation comes as he has turned increasingly bearish on the global economy. To this end, Dalio has warned that the United States and other major economies face mounting financial stress, pointing to record debt levels, ballooning deficits, and deep political divisions as signs of structural instability.
Interestingly, he has even compared the rising cost of servicing debt to an “economic heart attack,” warning it could crowd out other spending and destabilize the system.
At the same time, Dalio cautioned that interest rate cuts by the Federal Reserve may not bring lasting stability, predicting that several assets could face steep declines in an environment of looser monetary policy.
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