"Trump Policies Could Trigger Recession"... Warning from the World's Largest Hedge Fund

Bridgewater Associates, the world's largest hedge fund that predicted the 2008 global financial crisis, has warned that the economic policies of the Donald Trump administration could trigger a recession.

On the 24th (local time), Reuters and others reported that Bob Prince and two other co-chief investment officers (CIOs) of Bridgewater stated in a newsletter, "We anticipate an economic slowdown due to policy, and the likelihood of a recession is increasing."

They diagnosed that the Trump administration, which advocates 'America First', is rapidly shifting to 'modern mercantilism', putting U.S. assets that have relied on foreign capital inflows at exceptional risk.

They pointed out that △ weakening growth trends △ the inability of central banks to implement easing policies in problematic situations △ poor stock performance △ and the underperformance of the U.S. compared to other regions are increasingly leaving many investment portfolios in a vulnerable state.

It is interpreted as a warning that the phenomenon where investment performance in U.S. assets has consistently outperformed those in other regions over the past decade may not be repeated in the future due to Trump administration policies.

Bridgewater, founded in 1975 by Ray Dalio, known as the 'guru of Wall Street', is the world's largest hedge fund by assets under management. It is famous for its investment strategies aligned with global macroeconomic trends.

Bridgewater warned the market of the potential crisis due to excessive debt in 2007 and maintained its reputation by preserving fund assets amid market shocks during the financial crisis the following year.

Reporter Min-kyung Shin, Hankyung.com radio@hankyung.com