Last week, the billionaire’s company offered a bleak outlook on the global economy
Bridgewater Associates hedge fund, founded by the American billionaire Ray Daliobets at least $ 5.7 billion that European stocks will continue their downward trend this year, with the company recently becoming the largest short seller in the region, according to Bloomberg.
The amount includes a $ 1 billion position against semiconductor maker ASML Holding and $ 752 million against the shares of French oil giant TotalEnergies.
In total, Bridgewater has 18 short positions in Europe, but the number could be higher, writes Bloomberg, given that investment firms are not required to disclose their small positions. At the same time, the positions could be part of a general hedging strategy within the company, given that Bridgewater’s goal is not clearly in the profits made against the background of the declines suffered by the shares.
In 2020, Bridgewater tried to sell $ 14 billion worth of shares, after building a short position of $ 22 billion in 2018.
In the current market environment, defined by an alarming level of inflation, Dalio advised investors to stay away from cash as much as possible, but also warned that the outlook for equities is getting weaker. He believes that “real return assets” are the best type of investment.
In an interview with Italian newspaper La Repubblica on Thursday, Dalio explained that he is looking at assets that offer protection against inflation and avoid credit products and countries that could be hit by geopolitical turmoil.
–
