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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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Bridgewater Associates' Dalio on Market Selloff

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.