Ray Dalio braces himself against stagflation

The Wall Street Guru ray dalio puts the market on alert about the possible arrival of stagflation, as can be deduced from the turnaround made in their portfolios.

The billionaire investor has entered heavily into US defensive stocks that experts say may perform better in a stagflation scenario.

Thus, the founder of Bridgewater Associates increases its weight in American consumer companies such as Procter & Gamble, CostcoWholesale, PepsiCo, McDonald’s, Johnson & Johnson at the end of the quarter, as can be deduced from the reports of the investment vehicle.

Global 20 percent weight

The new increases in weight or entries in these listed companies make Dalio’s defensive bets penow 20 percent of all your investments from Bridgewater.

US inflation data for February will be released on Thursday and is estimated to rise 4 basis points year-on-year to 7.9 percent, from 7.5 percent previously.

Yes indeed, the market does not rule out that a greater increase may be seen if prices have picked up faster than expected the conflict in Ukraine.

Possible central bank changes

Part of the financial community estimates that the world’s central banks could make some kind of modification to avoid stagflation as a result of the invasion of Ukraine, which is causing an increase in prices accompanied by an economic slowdown.

Thus, the defenders of a change in the intentions of the Federal Reserve in this case argue that the schedule for raising interest rates would remain unchanged, but instead of raising them from 0.5 percent, they would remain in the range of 0.25 percent to 0.5 percent.

Dalio seems to buy this probability, although another part of the market believes that the significant increase in oil and energy prices in general will make the Federal Reserve more aggressive, but the flattening of the US Treasury curve is a bad omen for growth.

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Ray Dalio braces himself against stagflation