Research & Insights
MP3 policies were very successful in stimulating a rapid recovery from the pandemic. But this stimulation was applied for too long, resulting in persistent inflation and the need for central banks to slow the economy through aggressive tightening. Explore our research on the current challenges this new environment presents for investors.
Because environmental, social, and governance considerations affect how economies are evolving and how markets are priced, we seek a deep understanding of the ESG issues that are pertinent to our investment approach. We also partner with institutional investors seeking to achieve financial outcomes and have environmental and social impacts within large, liquid, multi-asset portfolios.
Bridgewater is focused on understanding the historical cause-effect relationships of complex economic situations. As we look back at the events of 2008, we invite you to explore some of the crisis-era research and decision making that enabled our investment team to understand what drove the market and helped us weather the greatest financial storm of a generation.
Over twenty years ago Bridgewater Associates pioneered portfolio balancing concepts that came to fruition with the creation of the All Weather asset allocation strategy in 1996. Read more about the concept of balance that lies behind the Risk Parity approach.
The economy is like a machine. At the most fundamental level it is a relatively simple machine, yet it is not well understood. Below we explain timeless insights of how it works and share long term perspectives that illustrate these forces playing out.
Our Research Process
Throughout our history, Bridgewater has focused on building the best possible understanding of global economies and markets. These unique insights drive our innovative investment engine, deliver returns for our clients, and inform global economic policy.
On a mission to uncover timeless and universal investment principles, our unique meritocratic culture and cutting-edge technology allow us to systematize and compound our insights over time so that our collective understanding is greater than that of any individual.
As a global macro-investment manager, we take a diversified approach spanning more than 150 different markets. With deep expertise in portfolio construction and risk management, we develop insights and design strategies to deliver value to our clients through any economic environment.
Selected Insights from Our Research Library
November 10, 2022
Greg Jensen and Bob Prince describe how they think the tightening cycle is likely to evolve, what it means for the economy and markets, and their areas of agreement and disagreement.
November 1, 2022
Many of the key markers of an inflation-driven bear market bottom are still missing today — little real economic weakening, few signs the central bank is ready to move to easing, and, as of yet, not much repricing of equities beyond the direct drag from rising interest rates.
October 27, 2022
Greenhouse gas emissions are highly concentrated in a few key sectors in investor portfolios; the publicly traded firms in these sectors alone are responsible for about 60% of all global emissions. Investors thinking through climate risks, climate opportunities, and net zero alignment should focus on these sectors.
October 11, 2022
Strong growth and a self-reinforcing, high level of inflation spurred the sharpest tightening in 60 years. To date, this tightening has led to weaker asset markets, but has had far less impact on economies. As Co-CIO Bob Prince illustrates, the next stage of the tightening cycle is likely to be an economic slowdown as policymakers work to bring inflation back to target.
October 12, 2022
In an interview with Bloomberg Markets, Co-CIO for Sustainability Karen Karniol-Tambour shares her views on whether the UK financial dilemma could spark contagion elsewhere, if central banks are tightening too much too quickly in trying to manage inflation, what the next big risk to assets is likely to be, and the risk of illiquidity in inflation-linked securities.
October 4, 2022
Daniel Yergin, one of the world’s leading experts on energy, and Angela Stent, one of the world’s leading experts on Russia, discuss the current state of the Russia-Ukraine war, how the war is reshaping the global energy map, and Russia’s role in an increasingly bipolar world.
September 22, 2022
High inflation and an extremely tight labor market leave the Fed with little choice but to tighten until the economy and markets weaken, setting up as bad an environment for financial assets as we have seen.
September 21, 2022
Top1000Funds highlights Co-CIO for Sustainability Carsten Stendevad’s recent conversation in a sustainability forum at Harvard University as he examines the role of investors in financing the transition to a low carbon economy and measurements involved in assessing and understanding the credibility of a company’s transition plans.
September 12, 2022
Co-CIO Greg Jensen speaks at the SALT New York forum about the biggest risks he's seeing in markets, Bridgewater's systematic approach to investing, and the big picture dynamics impacting markets and economies today.
September 1, 2022
Bridgewater alums Richard Okello, co-founder of Sango Capital, and Peter Orth, co-founder of 4DX Ventures, discuss Africa's investment opportunities, its risks — and how they've changed, and its potential to provide valuable diversification.
August 25, 2022
Equities are discounting higher interest rates but not the tightening’s impact on growth and earnings or the possibility that even more tightening will be needed to bring inflation down.
August 25, 2022
Co-CIO Greg Jensen joins “Bloomberg Markets” to discuss the Fed’s dilemma and its implications for the economy, assets, and portfolios. He also talks through the impact of quantitative tightening, and the challenges facing Chinese and European policy makers.
August 2022
Chief Investment Strategist Rebecca Patterson sits down with Pensions & Investments for the return of their “Face to Face” series featuring the best minds on Wall Street. In part one, Rebecca shares her outlook of prolonged stagflation, the Fed’s unenviable position, and Bridgewater’s efforts in helping clients navigate their biggest challenges. In part two, Rebecca unpacks currency risk and geopolitics as areas of concern for investors, her reflections on Bridgewater, and advice for up-and-coming investors and strategists.
August 19, 2022
Co-CIO Bob Prince and Evercore ISI Chair Ed Hyman join Bloomberg’s “Wall Street Week” to discuss the big imbalances in the economy and what they mean for investors.
August 18, 2022
Europe’s energy supply shock is creating a painful stagflation, and policy makers face a difficult set of choices. Looking forward, structurally higher energy prices will be a long-term competitiveness challenge for Europe.
August 16, 2022
Chief Investment Strategist Rebecca Patterson talks to “Bloomberg Surveillance” about how investors can approach protecting their portfolios — and particularly equity allocations — from the risk stagflation poses to asset returns.
July 29, 2022
On Bloomberg’s “Wall Street Week,” Chief Investment Strategist Rebecca Patterson breaks down the macro factors driving what we think will be persistently above target inflation and slowing growth; a very different outcome than the goldilocks scenario markets are pricing.
July 25, 2022
The economy is in transition, and the path forward depends on how central bankers play their hand. What we see as likely and what the markets are discounting are very different scenarios, signaling the strongest near-term probability of stagflation (too-high inflation and too-low growth) in 100 years. What are the impacts of stagflation on financial markets? Co-CIO Bob Prince shares Bridgewater’s analysis on what’s transpired and what’s yet to come.
July 15, 2022
In a piece published by the Financial Times, Co-CIO Bob Prince explains how environmental biases shape asset returns and how investors can prepare.
June 27, 2022
In an interview on CNBC’s “Squawk on the Street,” Chief Investment Strategist Rebecca Patterson discusses how the Fed tightening and slowing economic growth is likely to be a downward pressure on corporate earnings and equity returns.
June 17, 2022
Co-CIO Greg Jensen and members of Bridgewater’s research team examine the downward pressure on asset pricing, driven by the rapidly expanding liquidity hole and Fed tightening.
June 16, 2022
In an interview on “Bloomberg Markets,” Co-CIO Greg Jensen discusses the implications of rising interest rates, the growing liquidity hole, and how the Fed’s policies are impacting different financial assets.
June 9, 2022
In an interview with Bloomberg Markets, Co-CIO for Sustainability Karen Karniol-Tambour shares her outlook on rising inflation and slowing economic growth, the dilemma this presents for policy makers, and how investors can work to protect their portfolios in the current environment.
May 23, 2022
Greg joins Bloomberg’s "Odd Lots" podcast to discuss the impact of rising interest rates on the economy, why the Fed is increasingly facing a difficult choice between inflation and growth, and how to build a portfolio in today’s environment.
May 19, 2022
In a wide-ranging conversation with "The Money Maze Podcast," Co-CIO for Sustainability Karen Karniol-Tambour breaks down today’s challenging investing environment. Drawing on lessons from the past, she explores where investors can find inflation protection, China and the importance of geographic diversification, Bridgewater’s fundamental and systematic approach to sustainable investing, and much more.
May 17, 2022
The founders of Bridgewater and GMO discuss the big risks they’re watching, including inflationary pressures, political conflict, asset bubbles, and climate change — and what investors can do to protect themselves.
May 6, 2022
Co-CIO Bob Prince and Evercore ISI Chair Ed Hyman join Bloomberg’s Wall Street Week to discuss the current economic environment, recent market moves, and the challenges facing investors.
May 2, 2022
At the Milken Institute’s 2022 Global Conference, Chief Investment Strategist Rebecca Patterson joins a panel to discuss what the next year will look like for the global economy, what policy makers should do in response, and what opportunities these turbulent and uncertain times present for investors.
April 19, 2022
MP3 (coordinated monetary and fiscal policy) produced massive injections of money and credit into economies, leading to high nominal growth, leading to self-reinforcing inflation, leading to a tightening of monetary policy which is now just beginning. Stagflation is the big risk and the war in Ukraine has added to that. Co-CIOs Ray Dalio, Bob Prince, and Greg Jensen share their perspective and outlook on economies and markets today.
January 2022
We are now facing the greatest potential for a sustained rise in inflation in 40 years. For policy makers, this would be challenging enough on its own. But the pandemic, fiscal uncertainty, and asymmetric ability of central banks to tighten versus ease make the coming choices especially difficult.
Featured Research
We are constantly monitoring present day events and drawing lessons from history to shape and refine our understanding for how markets and economies work. Explore a collection of our research on topics ranging from debt crises to sustainable investing.
