Only a month ago the manager of the largest hedge fund in the world who saw a “significant risk” of recession has now softened his view and is more hopeful that the US economy will not be in recession. His opinion changed after the Fed had taken a more sophisticated stance on its monetary policy.
“While I still expect a slowdown in the US economy and around the world, I lowered my forecast that there would be a recession before the presidential election in 2020 to 35%.” – says the Bridgewater Associate manager.
On January 22, Dalio told CNBC at the Davos forum that he saw a “significant risk” of a recession before 2020. Namely, at the end of the month, FED said they would take a more patient approach to interest rates this year.
Following the FED statement, there was a strong rally in the financial markets, with the S & P500 rising by 11% since the beginning of the year.
Over the past year, Bridgewater – Pure Alpha flagship posted a 14.6 percent return, surpassing markets and most other industry funds.
Trader Martin Nikolov