Famous investor Raywater’s American investment fund Bridgewater is betting on a corporate bond sale this year, the world’s largest hedging fund with a bleak view of the trajectory of the global economy, writes FT.
The bet against US and European corporate bonds highlights Bridgewater’s assessment that the recent weakness in major financial markets will not be short-lived.
“We are in a radically different world,” Gregwater Jensen, one of Bridgewater’s chief investment officers, told the Financial Times. “We are approaching a slowdown.”
Jensen, who helps lead investment decisions with co-CEO Bob Prince, warned that inflation will be much stiffer than economists and the market currently predict, which could force the US Federal Reserve – the most influential bank central bank in the world – to raise interest rates more than many expect on Wall Street.
He added that if the Fed’s decision-makers commit to reducing inflation to the 2% target, “it could tighten very sharply, which would crack the economy and probably crack even the weakest. [companii] from the economy “.
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