The world’s largest hedge fund, Bridgewater Associates, has made several changes to its investment portfolio in the second quarter of this year that send signals that the entity founded by Ray Dalio is bracing for a stock market crash.
The fund’s main acquisitions, which manages some $ 150 billionAccording to Forbes, they focused on the financial, consumables, healthcare and consumer discretionary sectors, according to data from WhaleWisdom.
The largest transaction was the purchase of 2,565,000 shares of Coca Colafollowed by a bundle of listed mutual funds iShares MSCI Emerging Index Fund (1.7 million), 1.6 million shares of Walmart, 1.5 million Procter & Gamble and 1.1 million Johnson & Johnson.
At the same time, Bridgewater reduced by 37% their holdings in SPDR S&P 500 ETF Trust, which tracks the stock index considered the most representative of the real market situation in the US, the S&P 500. The number of these securities fell by 1,163,000, reducing the proportion of these ETFs (exchange-traded funds) in the portfolio from 10.97% to 5.42%.
The investment company BCS points out that these changes in the investment structure in favor of lower risk sectors —consumables and healthcare now represent 26.4% and 15.72% of the portfolio— “clearly demonstrate opinion Bridgewater on the situation. “
“The last time a similar alignment of assets was in 2006 and 2007, that is to say, immediately before the crash of 2008 “, points out BCS.
The company recalls that Ray Dalio has repeatedly warned investors of dangerous signals that could indicate the beginning of a decline in the markets in the near future.
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