Bridgewater Talk on Global Outlook: Is Stagflation Next?

Earlier this month, Bridgewater Senior Portfolio Strategist Jim Haskel discussed the current market environment with the firm’s Co-CIO Greg Jensen including the global outlook as the Covid-19 pandemic continues, the challenges faced by policy makers and the prospects for deflation, inflation or stagflation. Here are some highlights: Jensen emphasized how ­­we are facing a “rare set of circumstances” because the current crisis is a result of an income shock—rather than a credit shock, which triggered… Read More

Bridgewater: China on Track to be Largest Economy in the Next Ten Years

The head of China research for Bridgewater Associates said that China will become the world’s largest economy in approximately 10 years because of the country’s decision to open its markets to outsiders. This according to an article in Chief Investment Officer. Speaking at the board meeting of the Arizona Public Safety Personnel Retirement Trust last month, Bridgewater’s Paul Podolosky told pension officials that Chinese assets are appealing as more than just a good portfolio diversifier,… Read More

Bridgewater’s Bet on Brazil

The world’s largest hedge fund sees tremendous growth potential in Brazil’s economy and thinks it will be “the strongest in the world” in 2020. This according to an article in Chief Investment Officer. In a March letter to clients, the firm reportedly said that Brazil should be well on the path to recovery after a 2015-2016 recession, adding, ” “Given that pricing already discounts extreme weakness and mismanagement, we think there is considerable room for… Read More

Bridgewater and Renaissance Earn $13 billion for Investors

The profits generated by Ray Dalio’s Bridgewater Associates and Jim Simons’ Renaissance Technologies “beat their rivals in a tough year for hedge funds in 2018, making a combined $13 billion for their investors.” This according to a recent article in Bloomberg. “The profits accounted for more than half the money generated by the top 20 managers last year,” the article reported (based on estimates by LCH Investments NV, a fund of hedge funds). Rick Sopher,… Read More

Bridgewater’s New Brain is a Millennial Woman

A recent article in Forbes profiles Karen Karniol-Tambour, head of investment research at Bridgewater Associates, the world’s largest hedge fund (assets totaling $160 billion). Karniol-Tambour, the article says, “directs a 150-person operation that Paul Volcker has described as producing ‘more relevant statistics and analyses than the Federal Reserve,’ ” a role she assumed at only 31 years of age, making her one of the higher profile women on Wall Street. “Besides overseeing a third of… Read More

Dalio’s $22 Billion Bet Against Europe

Billionaire fund manager and Bridgewater founder Ray Dalio is “leading his firm down a path few other funds care to tread,” that involves selling off European holdings to the tune of $22 billion. This according to a recent article in Bloomberg. The article explains that Europe’s strong economy, tight labor market and rising interest rates are factors that fulfill Dalio’s “sell” requirements. Last year, it reports, Europe’s economy grew at the fastest pace in a… Read More

Bridgewater’s Arguments Against Fed Rate Hikes

Bridgewater Associates, the world’s largest hedge fund, told clients that the Federal Reserve is making a mistake by raising interest rates. This according to a recent article in Business Insider. In a recent client note co-written by Bridgewater founder Ray Dalio, the firm outlines five arguments against further rate hikes: “There is not nearly enough inflation and overheating risk to make concerns about inflation and overheating performance of paramount importance.” “It’s tougher to reverse an… Read More