Current Challenges Investors Face
Today’s environment is radically different from what most investors have experienced over the past 30-40 years. 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.
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 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.
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 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.
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 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.
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 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 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 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.