US stock market has yet to price in economic downturn – Bridgewater co-CIO

Karen Karniol-Tambour, Co-Chief Investment Officer – Sustainability at Bridgewater Associates LP, speaks during the Skybridge Capital SALT New York 2021 conference in New York, U.S., September 14, 2021. REUTERS/Brendan McDermid

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NEW YORK, June 9 (Reuters) – Karen Karniol-Tambour of Bridgewater, co-chief investment officer for sustainability, said on Thursday the U.S. stock market had not yet priced in a U.S. economic slowdown.

“Earnings are extremely high and it seems very unlikely that they can stay this high forever at unprecedented levels,” she told the audience at the Sohn Investment Conference.

Although the S&P 500 is down 14.8% this year, Karniol-Tambour believes investors have only priced in higher interest rates, ignoring a very significant economic slowdown and increased volatility brought by persistent inflation.

“The market doesn’t really reflect a significant economic downturn,” she said.

Bridgewater, founded by Ray Dalio, manages $150 billion in assets.

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Reporting by Carolina Mandl; Editing by Cynthia Osterman

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