In his latest LinkedIn post, Dalio, who recently embraced bitcoin as an investment option, outlined a bright future for American investors.
Dalio: Preparing for shocking tax changes
With the outbreak of the coronavirus pandemic, bonding has become almost unnecessary to maintain prosperity. In an effort to pay off some of the massive debt created by their response, the US government is planning to raise taxes – and the consequences could be far worse than many think.
This, according to Dalio, is the new paradigm.
If history and logic take their course, tight-fisted politicians will raise taxes, and they will not be happy with this movement of capital out of debt instruments into other asset vaults and tax zones, so they may ban the movement of capital into other assets (such as gold, bitcoin, etc.) and elsewhere, he concluded.
These tax changes may be more shocking than expected.
As a result, the climate for savers will end up being less attractive than ever.
The US is becoming inhospitable to capitalism, Dalio says, and to protect against the consequences, investors should take a well-diversified portfolio of non-debt and non-dollar assets, as well as a short-currency position.
US 10-yearbond yield versus the BTC/USD chart. Source: View of the shop
A sailor uses bitcoin as an obvious solution
However, Michael Saylor, CEO of MicroStrategy, replied that bitcoin was the answer.
I agree with (Dalio) that bonds no longer work as an investment in Treasury bonds, he tweeted.
With all due respect, bitcoin is the obvious and much more practical solution than a well-diversified portfolio of unleveraged or unleveraged assets in emerging Asia….. Markets.
MicroStrategy continues to expand its position in BTC, buying 260 BTC last week for $15 million. The company has a total of 91,064 BTC.
Dalio himself has significantly revised his stance on bitcoin, admitting that his concerns were based on his ignorance of how the crypto currency works.
His views echo those of Arthur Hayes, former CEO of derivatives giant BitMEX, who in his own blog post advised investors to bet on cryptocurrencies and interest rate volatility.
I also think we need to keep an eye on tax changes and the possibility of capital controls, Dalio concluded.
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