Current Challenges Investors Face
Today’s environment is radically different from what most investors have experienced over the past 30-40 years. Going into 2022, self-reinforcing demand dynamics sparked by aggressive coordinated monetary and fiscal policy (“MP3”) were producing sustained high inflation, and fiscal and monetary policy were beginning to tighten in response. Then Russia invaded Ukraine, creating a supply shock on top of already excessive demand, increasing the risk of stagflation. We haven’t seen such conditions since the 70’s, with many portfolios today unprepared for sustained high inflation, and especially vulnerable to stagflation. Additionally, the geopolitical implications of the war push us further towards deglobalization, making geographic diversification both more challenging and more valuable.
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 27, 2022
Earnings are priced in to keep rising while inflation is priced in to fall. Co-CIO Greg Jensen and Bridgewater's research team explore why it rarely works out that way.
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.
March 18, 2022
Co-CIO Greg Jensen shares how he’s processing the war in Ukraine as an investor, the implications of deglobalization and the weaponization of finance, and the risk of stagflation.
March 17, 2022
Co-CIO for Sustainability Karen Karniol-Tambour joins Bloomberg to unpack the challenges facing investors, including the bond market, inflation, and geopolitical shocks.
March 15, 2022
Co-CIO for Sustainability Karen Karniol-Tambour joins panelists at The Council on Foreign Relations to discuss the economic impact of the Russian invasion of Ukraine, the use of sanctions by the US and other countries, and the rates of inflation around the world.
January 12, 2022
As the Fed transitions toward tightening, it will be increasingly important for investors to understand the drivers of a bear market in equities and the approaches to managing through it.
February 3, 2022
Co-CIO Bob Prince describes how too much delay in monetary policy tightening risks a much bigger response as the central bank catches up with inflation.
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.