Bridgewater’s Greg Jensen Warns Markets Are Still  ‘Overly Optimistic’

Even after several tumultuous weeks that have seen both bonds and stocks tumble, Bridgewater Associates’ Greg Jensen says that markets are “overly optimistic” and investors have yet to adapt to a period of “secular change” that involves both higher inflation and slower growth.

Speaking on an episode of the Odd Lots podcast, the co-chief investment officer of the world’s biggest hedge fund warned of a toxic brew for asset prices as the Federal Reserve raises interest rates and unwinds its balance sheet to deal with the highest inflation in decades.