Tuesday, February 12, 2013

A liquidity move?

Bridgewater Associates - Dalio has impressed me. Of course, that does not mean they are always right :)

But Dalio and the firm have been talking of money finally finding its way into real assets like stocks and oil. (Yes, stocks are real assets). And this post at Bloomberg says that Bridgewater is going to move (or have already moved) into those assets. 

I don't know how this pan out but co-CIO Bob Prince did say: "You’re likely to do reasonably well until you hit the tail end of that cycle, where you get the central banks pulling back on liquidity,” Prince said. “That can continue for some time until the Fed no longer continues to inject liquidity. That would end that cycle and push all yields up which would, of course, hurt asset returns."

And that according to them, it seems, is far away. 
Then again, do we ever know these things?

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