The world's largest hedge fund, Bridgewater Associates, which predicted the global financial crisis of 2008, has warned that the economic policies of the Donald Trump administration could trigger a recession.
According to Reuters on the 24th (local time), three co-chief investment officers (CIOs) of Bridgewater, including Bob Prince, noted in a newsletter, "We anticipate a slowdown in the economy due to policy, and the likelihood of a recession is increasing."
They diagnosed that the assets of the United States, which had been relying on foreign capital inflows, are at exceptional risk as the Trump administration, which puts forth 'America First' policies, has rapidly transitioned to 'modern mercantilism.'
They pointed out that many investment portfolios are becoming increasingly vulnerable due to ▲ weakened growth ▲ the inability of the Central Bank to implement easing policies in problematic situations ▲ poor stock performance ▲ and the underperformance of the United States compared to other regions.
It is interpreted as a warning that the phenomenon of the investment performance of U.S. assets consistently outperforming those of other regions over the past decade may not be repeated due to the Trump administration's policies.
Bridgewater, founded by Ray Dalio in 1975 and known as 'the guru of Wall Street,' is the largest hedge fund in the world by assets under management, renowned for executing investment strategies aligned with global macroeconomic trends.
Bridgewater warned the market of the potential crisis due to excessive liabilities in 2007, and during the financial crisis of 2008, it retained its fund assets intact amidst market shocks, earning a strong reputation.