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Markets Face Downside After July Jump: Bridgewater’s Patterson

  • Fed will need more hikes to cool inflation, risking recession
  • US GDP likely to shrink 2-3% within six to nine months
Rebecca Patterson

Rebecca Patterson

Photographer: Christopher Capozziello/Bloomberg

Investors should stay wary of US stocks and bonds as inflation remains a threat and recession looms, according to Rebecca Patterson, chief investment strategist at Bridgewater Associates.

The stock market, which finished its best month since November 2020, has mistakenly given the benefit of the doubt to the Federal Reserve’s ability to engineer a soft landing, as officials try to cool inflation by raising rates without triggering a recession, Patterson said Friday on Bloomberg Television’s “Wall Street Week.”