US stock market not yet priced in economic slowdown: Bridgewater co-CIO

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US stock market not yet priced in economic slowdown: Bridgewater co-CIO

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 US stock market not yet priced in economic slowdown: Bridgewater co-CIO
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Highlights:

  • Karen Karniol-Tambour, co-CIO for sustainability, Bridgewater, said on Thursday that the US stock market has not yet priced in an economic slowdown.
  • According to her, investors have only taken into consideration a rise in interest rates, ignoring a very significant economic slowdown.
  • Bridgewater, founded by Ray Dalio, manages $150 billion in assets.

Bridgewater's Karen Karniol-Tambour, co-chief investment officer for sustainability, said on Thursday that the U.S. stock market has not yet priced in an economic slowdown in the United States.

"Profits are extremely high and it seems very unlikely they can remain this high at unprecedented levels forever," she told the audience at the Sohn Investment Conference.

Also Read: RIO to NEM: Should you consider these 5 gold stocks amid inflation?

Although the S&P 500 is down 14.8% this year, Karniol-Tambour believes investors have only taken into consideration a rise in interest rates, ignoring a very significant economic slowdown and higher volatility brought by persistent inflation.

Also Read: US household wealth declines for first time since 2020

"The market is not really reflecting a significant economic slowdown," she said.

Bridgewater, founded by Ray Dalio, manages $150 billion in assets.

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