Current Challenges Investors Face

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.

In a piece published by the Financial Times, Co-CIO Bob Prince explains how environmental biases shape asset returns and how investors can prepare.

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.

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.

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.

Assets are facing significant headwinds from inflation and Fed tightening, but not holding assets is not an option. This raises the question — how should investors think about holding beta in the current environment?

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.

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.

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.

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.

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.

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.

Co-CIO for Sustainability Karen Karniol-Tambour joins Bloomberg to unpack the challenges facing investors, including the bond market, inflation, and geopolitical shocks. 

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.

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.

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.