At the recent World Economic Forum in Davos, Switzerland, billionaire Ray Dalio told CNBC that the coming tax cut could lead to big gains for the U.S. stock market.

“We are in a Goldilocks period right now,” said the Bridgewater CEO. “Inflation isn’t a problem. Growth is good,” he said, predicting a “market blow off” rally fueled by cash from banks, corporations and investors. “There is a lot of cash on the sidelines,” he added. “If you’re holding cash, you’re going to feel pretty stupid.”

Potential rate hikes by the Fed, Dalio argued, represent key market risks, adding that increases of 100 basis points to 125 basis points will lead to a drop in asset prices. “You can’t have a significant rise in interest rates,” Dalio contends, “without knocking over the whole asset markets.”