Investors are keeping a close eye on market volatility, tracking every move as Wall Street tries to claw its way out of the lows, CNBC writes.

“Cash is still garbage,” Dalio says. – Do you know how quickly you lose the purchasing power of cash?”.

Unfortunately, that doesn’t mean investors are better off keeping their money in stocks or bonds because “stocks are worse,” the billionaire noted.

At a time when inflation is weighing heavily on real returns, Dalio believes investors are better off looking at “real” assets like real estate.

After a decade of strong stock returns, Dalio explains that the problem is that too many investors are now focused on equities. And while the past few months have been characterized by relentless selling, there is still risk before breakeven is reached.

Bonds shouldn’t be seen as a safe investment either. According to Dalio, the U.S. Federal Reserve and many central banks around the world have begun winding down their extremely loose monetary policies of the COVID-19 era, which could create an imbalance in the markets.