Investing
Bridgewater Says Fed Won’t Blink Before ‘Much Bigger’ Stock Drop
- Co-CIO Jensen says Fed could tolerate a decline of 15-20% more
- Markets face a ‘liquidity hole’ as central bank pulls stimulus
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How much further is the Federal Reserve willing to let stocks slide? That’s the burning question of the moment for financial markets, and Greg Jensen, co-chief investment officer at Bridgewater Associates, has an answer: as much as 20% more.
That’d put the S&P 500 below 3,500, or close to where it was before the Covid-19 pandemic began two years ago. The benchmark U.S. index closed Wednesday at 4,350.