Bridgewater Associates’ Ray DalioHe stood firm in his conviction that cash was not the right place, despite volatility seen on the market due to the new omicron Covid variation.

CNBC’s founder of the biggest hedge fund in the country said Tuesday that “Cash is not safe to invest, it is not safe because inflation will tax it,” “Squawk Box.”

The billionaire investor stated that it is important to have a well-balanced and safe portfolio during turbulent times.

“You can decrease your risk but not reduce your return. Market-timing this is impossible. Dalio stated that even if you are a market-timer extraordinaire, these events can have a profound impact on the marketplace and change what is possible to be priced in the market.

After being first discovered in South Africa, the omicron Covid virus rattled the stock markets on Black Friday.variant of concern.” “The Dow Jones Industrial AverageFriday’s slide of 900 points caused by the recession its worst day since October 2020. The stock market futures reported another down day Monday following Wall Street’s rebound. Investors were monitoring the ongoing crisis in health.

Because of the huge fiscal and monetary stimulus that was administered by the Federal Reserve to boost the economy, and thanks to it, the stock markets rebounded quickly from the March 2020 pandemic top. Dalio stated that the excessive money supply could lead to certain political and economic problems.

He said, “It is not possible to raise living standards simply by increasing the credit system’s money because it’s more money trying to buy the same quantity of goods.” The financial markets will be affected in similar ways as before and the inflation rate will rise. It will not raise living standards significantly. Inflation can then start to take hold, and it will have political implications.”

Inflation spiked to a critical level in October. This acceleration is accelerating its fastest pace since the early 1990sThe measure was calculated using prices for personal consumption, which exclude food and energy. Fed policymakers closely monitor this indicator.

They have been dealing with an inflation problem that is more severe and persistant than anticipated. Officials believe that inflation has reached a point in which they will be able to gradually reduce the monthly stimuli they provide through bond buying.

Dalio explained that “what we are witnessing has been repeated many, many more times in history. It is like watching the movie over,”