Hedge fund manager Bridgewater has been a good indicator of the end of a stock market correction in the past.
(Photo: Bloomberg (M))
Dusseldorf When does the stock market bottom?? And when will the prices rise again? This is the question that all investors are probably asking themselves right now. The behavior of Ray Dalio, the head of Bridgewater, the world’s largest hedge fund, could help answer that question.
The billionaire caused a stir in June with his bets against the European stock market. Dalio and Bridgewater are currently betting on the fall in share prices of 29 European companies. The value of these short positions is currently close to ten billion dollars.
This is not the first time that Dalio has bet against the European stock market. During the coronavirus outbreak in spring 2018 and March 2020, he already bet on falling prices in the euro zone – each one was successful. Handelsblatt’s analysis suggests that investors can learn from this in the current situation. In the past, his short bets have been useful in predicting the end of a correction.