Bridgewater’s Still Waiting For The Stock Market Bottom

Stéphane Renevier

15 days ago4:16 mins

Bridgewater’s Still Waiting For The Stock Market Bottom

Stocks might be down this year, but $140-billion hedge fund Bridgewater thinks the bottom’s still to come. The world’s biggest hedge fund has compared today’s conditions to those of past inflation-driven bear markets, and it fears things have to get worse before they get better. Here’s why.

What needs to happen for stocks to fall further?

Bridgewater’s identified that bear markets tend to follow two stages, as I explained here. Here’s the quick version:

First off, lower valuations. Rising interest rates reduce the present value of a firm’s future cash flows, because they increase the rate that’s used to discount them back to today. And since higher interest rates tend

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