Foreign news reports, the world’s largest hedge fund Bridgewater (Bridgewater) co-investment director Greg Jensen said that the whole is about to usher in a new wave of Inflation, or force the Federal Reserve Board than the original plan to raise interest rates in advance. He said, the United States Biden government’s “extreme” fiscal stimulus policy, will push up prices, and even threaten the stock and bond markets.
Jensen said that the actual speed of change in economic conditions and inflation will exceed the market or the Federal Reserve’s expectations.
Bridgewater has previously warned investors to be wary of bonds. Last year, Bridgewater will be part of its portfolio “All Weather portfolio”, from government bonds to inflation-linked Treasury bonds and Gold.
He said the role of using bonds to diversify portfolios has deteriorated significantly, and it is clear that the ability to use bonds to obtain returns has declined.
This is despite rising market expectations for inflation that have pushed the 10-year U.S. bond yield sharply higher. However, the Federal Reserve’s previous economic forecast shows that interest rates will not be raised in the next two years either.
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