{"id":50662,"date":"2020-01-22T19:42:27","date_gmt":"2020-01-23T00:42:27","guid":{"rendered":"https:\/\/olduvai.ca\/?p=50662"},"modified":"2020-01-22T19:42:31","modified_gmt":"2020-01-23T00:42:31","slug":"bridgewater-co-cio-the-boom-bust-cycle-is-over","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=50662","title":{"rendered":"Bridgewater Co-CIO: &#8220;The Boom-Bust Cycle Is Over&#8221;"},"content":{"rendered":"\n<h3 class=\"wp-block-heading\"><a href=\"https:\/\/www.zerohedge.com\/markets\/bridgewater-co-cio-boom-bust-cycle-over\">Bridgewater Co-CIO: &#8220;The Boom-Bust Cycle Is Over&#8221;<\/a><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Just in case anyone was worried that the smart money was quietly getting ready to stop dancing after Bridgewater&#8217;s Co-CIO Greg Jensen&nbsp;<a href=\"https:\/\/www.zerohedge.com\/markets\/everyone-extremely-long-frothy-stocks-worlds-biggest-hedge-fund-warns-expects-gold-soar\">told the FT in an interview&nbsp;<\/a>last week that it&#8217;s time to buy gold (which he sees rising to $2,000 because the Fed and other central banks would let inflation run hot for a while and&nbsp;<em>&#8220;there will no longer be an attempt by any of the developed world\u2019s major central banks to normalize interest rates&#8221;<\/em>) ahead of the Fed cutting rates to zero and that&nbsp;<strong>&#8220;equities are frothy<\/strong>&#8221; as&nbsp;<strong>&#8220;most of the world is long equity markets&#8221;,&nbsp;<\/strong>today Bridgewater&#8217;s&nbsp;<em>other&nbsp;<\/em>Co-CIO came out with a controversial statement that appears to convey a polar opposite message to Jensen&#8217;s warning.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Bob Prince, who alongside Greg Jensen helps oversee the world\u2019s biggest hedge fund at Bridgewater Associates as its other Co-CIO, said&nbsp;<strong>&#8220;<a href=\"https:\/\/www.bloomberg.com\/news\/articles\/2020-01-22\/bridgewater-co-cio-bob-prince-says-boom-bust-cycle-is-over?utm_medium=social&amp;cmpid%3D=socialflow-twitter-tv&amp;utm_content=tv&amp;utm_source=twitter&amp;utm_campaign=socialflow-organic\">the boom-bust economic cycle is over<\/a>.&#8221;<\/strong><\/p>\n\n\n\n<figure><iframe loading=\"lazy\" height=\"520\" src=\"https:\/\/www.bloomberg.com\/multimedia\/api\/embed\/iframe?id=1c257d37-2021-4a35-9c99-93af54604368\" width=\"500\"><\/iframe><\/figure>\n\n\n\n<p class=\"wp-block-paragraph\">Speaking to Bloomberg TV in Davos, Prince suggested that the tightening of central banks all around the world &#8220;wasn\u2019t intended to cause the downturn, wasn\u2019t intended to cause what it did&#8221; &#8211; and yet that&#8217;s precisely what the shrinking of the Fed&#8217;s balance sheet did hence the record expansion over the past four months &#8211; and shockingly said that &#8220;<strong>the lessons were learned from that and I think it was really a marker that we\u2019ve probably seen the end of the boom-bust cycle<\/strong>.&#8221;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Prince was referring not only to the boom-bust cycle created by central banks, which first ease then tighten, resulting in bubbles and eventually crashes, as described in &#8220;<a href=\"https:\/\/www.zerohedge.com\/news\/2018-05-24\/deutsche-every-fed-tightening-cycle-creates-crisis-somewhere\">Every Fed Tightening Cycle Creates A Crisis<\/a>&#8220;&#8230;<\/p>\n\n\n\n<figure class=\"wp-block-image\"><img decoding=\"async\" src=\"https:\/\/zh-prod-1cc738ca-7d3b-4a72-b792-20bd8d8fa069.storage.googleapis.com\/s3fs-public\/inline-images\/fed%20tightening%20cycle_2.jpg\" alt=\"\"\/><\/figure>\n\n\n\n<p class=\"wp-block-paragraph\">&#8230; but also to the broader cycle of economic expansion and contraction that repeats itself. <\/p>\n\n\n\n<p class=\"wp-block-paragraph\">\u2026click on the above link to read the rest of the article\u2026<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Bridgewater Co-CIO: &#8220;The Boom-Bust Cycle Is Over&#8221; Just in case anyone was worried that the smart money was quietly getting ready to stop dancing after Bridgewater&#8217;s Co-CIO Greg Jensen&nbsp;told the FT in an interview&nbsp;last week that it&#8217;s time to buy gold (which he sees rising to $2,000 because the Fed and other central banks would [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[2],"tags":[28853,5451,10905,193,4318],"class_list":["post-50662","post","type-post","status-publish","format-standard","hentry","category-economics","tag-bob-prince","tag-boom-bust-cycle","tag-bridgewater","tag-davos","tag-zerohedge"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/50662","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=50662"}],"version-history":[{"count":2,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/50662\/revisions"}],"predecessor-version":[{"id":50664,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/50662\/revisions\/50664"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=50662"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=50662"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=50662"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}