bridgewater associates ray dalio believes hiding out in cash doesnt bode well in todays environment but buying equities could be worse of course cash is still trash dalio said on cnbcs squawk box at the world economic forum in davos tuesday you know how fast you are losing buying power in cash equities are trashier the founder of the worlds biggest hedge fund said having a global and welldiversified portfolio in this market is important and real assets physical assets such as real estate energy and infrastructure are where investors should consider going in an inflationary environment weve shifted into an environment where assets that do well almost like in the 70s are real assets real return assets in various ways are the best investments dalio said the federal reserve and other central banks around the world have begun pulling back their extraordinarily accommodative covidera monetary policies which could create an imbalance in the markets the billionaire investor said the federal reserve is going to sell individuals are selling foreigners are selling and the us government is selling because it has to fund its deficit dalio said so theres going to be a supply demand problem that means it produces a squeeze dalio added that investors have not positioned themselves well enough to hedge against decadeshigh inflation  and they should look at various assets to diversify their portfolios including bitcoin  the world is not dealing adequately i think with the part of their portfolio that should be inflationhedged assets thats institutions and individuals dalio said bitcoin has made a tremendous achievement over the last 11 years its a tiny percentage of my portfolio i think you have to look at the broader set of assets that serve that purpose