Bridgewater Associates co-chief investment officer Greg Jensen said Monday that investors are still too optimistic when it comes to inflation and the lowering of interest rates.
Speaking on the Odd Lots podcast, Jensen argued that investors are still too confident that the U.S. economy will start growing again soon. “The Fed seems a little bit more realistic than the markets do on what it’s going to take,” he told the hosts. “To get an equity rally from here, you have to have lower rates fairly quickly into a world where earnings are pretty good. That’s kind of the discounted line. To get above that you need even more than that. And I think that line is super optimistic relative to what we measure.”
While Jensen has been wrong about a few things in the past, he is still the CIO of the world’s largest hedge fund, and has an exceptional finger on the pulse of human behavior. He went on to explain how our current bubble probably would have worked itself out in the past, but thanks to the idiocy of COVID-19 policies, those recovery trends are no longer available to the American public.
Dear Kay: I Just Saw The Banking News. Are We Screwed? | @DailyCaller
— KAY SMYTHE (@KaySmythe) March 13, 2023
If you bought a home with a mortgage recently, probably yes. But here’s some advice anyway. https://t.co/AclSjtGbl5
