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NEW YORK (AP) — What's a better investment — U.S. bonds or the underside of your mattress?
Ray Dalio wonders if it's the latter.
Dalio founded the hedge fund Bridgewater Associates. He tells the Council on Foreign Relations: "You are quite close to cash under the bed being better than Treasurys. Because essentially you know you're going to get it back if it's under the bed."
The rate on the 10-year Treasury note is about 1.7 percent. Earlier this summer, it scraped to its lowest on record, under 1.4 percent.
Dalio says the risk of super-low returns is that buyers of Treasurys, including foreign governments that finance U.S. government deficits, will go elsewhere as soon as a reasonable alternative emerges.