Investors could be looking at a 'lost decade' in the stock market, biggest hedge fund warns
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MarketWatch) Thats part of the reason why Bridgewater Associates, the worlds biggest hedge fund, issued a warning to clients this week that equity investors could be facing a lost decade in terms of returns.
Globalization, perhaps the largest driver of developed world profitability over the past few decades, has already peaked, Bridgewater said in a note obtained by Bloomberg News. Now the U.S.-China conflict and global pandemic are further accelerating moves by multinationals to reshore and duplicate supply chains, with a focus on reliability as opposed to just cost optimization.
Intel Corp. INTC, -0.67% and Taiwan Semiconductor Manufacturing TSM, -0.05% were cited in the note as two examples of high-profile technology companies that plan to build their production facilities in the U.S., despite the higher costs that will pinch margins.
Its been a rough stretch for Ray Dalios Bridgewater, which has earned an estimated $58.5 billion for clients since its launch in 1975. The fund took a 15% hit in assets under management during March and April, dropping to $138 billion from $163 billion at the end of February. ........(more)
https://www.marketwatch.com/story/investors-face-a-lost-decade-in-the-stock-market-according-to-this-warning-from-the-worlds-biggest-hedge-fund-2020-06-18?mod=home-page