All $160 billion of the huge hedge fund is net short equities
Zerohedge has some interesting comments from Bridgewater warning about higher rates leading to trouble in emerging markets that spreads to global equities.
From co-CIO Greg Jensen:
"Markets are already vulnerable, as the Fed is pulling back liquidity and raising rates, making cash scarcer and more attractive - reversing the easy liquidity and 0% cash rate that helped push money out of the risk curve over the course of the expansion. The danger to assets from the shift in liquidity and the building late-cycle dynamics is compounded by the fact that financial assets are pricing in a Goldilocks scenario of sustained strength, with little chance of either a slump or an overheating as the Fed continues its tightening cycle over the next year and a half."
He adds that they are bearish on financial assets.
