1
0

hedge fund billionaire warns of another Lost Decade


 invite response                
2020 Jun 20, 12:08pm   556 views  2 comments

by AD   ➕follow (1)   💰tip   ignore  

Ray Dalio of Bridgewater warns of another "Lost Decade" for investing

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?siteid=yhoof2&yptr=yahoo

‘Even if overall profits recover, some companies will die or their shares will devalue along the way. Left with lower levels of profits and cash shortfalls, companies are likely to come out on the other side of the coronavirus more indebted.’
That’s part of the reason why Bridgewater Associates, the world’s 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, -0.76% and Taiwan Semiconductor Manufacturing TSM, -1.49% 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.

It’s been a rough stretch for Ray Dalio’s 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.

Comments 1 - 2 of 2        Search these comments

1   AD   2020 Jun 20, 12:19pm  

............

I calculated compound annual growth rate (CAGR) using an online CAGR calculator for the S&P 500.

S&P 500 CAGR with dividends reinvested and not accounting for annual inflation (i.e., about 2.5%)

1) Jan 1990 to Jan 2000: +18.23%

2) Jan 2000 to Jan 2010: - 0.58% (this was the Lost Decade due to the Dot Com Bubble, 9/11 and War on Terror, and the Housing Bubble)

3) Jan 2010 to Jan 2020: +13.53%

4) Jan 2000 to present day (20 June 2020): +5.88%

5) Jan 1990 to present day : +9.79%

WILL WE HAVE ANOTHER "LOST DECADE" FROM MARCH 2020 to MARCH 2030 ??????

...................
2   AD   2020 Jun 20, 12:28pm  

..

I calculated the CAGR for gold using an online CAGR calculator. It does not account for annual inflation.


1) January 1990 to January 2000: - 3.48%

2) January 2000 to January 2010: +5.43%

3) January 2000 to present day: +9.19%

..................

Please register to comment:

api   best comments   contact   latest images   memes   one year ago   random   suggestions