The world's largest hedge fund has made the astonishing claim that it's bearish on almost all financial asset classes, according to the website ZeroHedge.
The finance blog highlighted a conclusion from Bridgewater Associate's latest "Daily Observation" note Tuesday, authored by the firm's co-CIO Greg Jensen.
"We are bearish on financial assets as the U.S. economy progresses toward the late cycle, liquidity has been removed, and the markets are pricing in a continuation of recent conditions despite the changing backdrop," Bridgewater said.
The hedge fund's forecast also pointed to a tightening of conditions for the U.S. economy as tailwinds from both the Federal Reserve and White House ease off.
"2019 is setting up to be a dangerous year, as the fiscal stimulus rolls off while the impact of the Fed's tightening will be peaking," it added.
The hedge fund said it is skeptical that a "picture of calm" that is currently priced into markets will actually play out.
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