Bridgewater is wary, with co-chief investment officer Bob Prince arguing we are at a potential inflection point where the economy is moving from hot to mediocre
- A lot of optimism about future earnings growth has been baked into equity valuations
- we are clearly shifting from an era of monetary easing to monetary tightening
Prince is concerned on bith rising interest rates and the tax cut impacts weaig off. he is not a huge bear though:
- "The risks of a sharp downturn are somewhat mitigated by the fact that we're not overleveraged, but the risks of a prolonged downturn are greater"
Financial Times has more, its gated but here is the link if you can get it (can access a limited number of reports with a free registration)
