Ray Dalio (Bridgewater) foresees a further drop from 20% to 25%

ray dalio

The market correction looks like it’s not over yet and experts expect further fixes like the founder of the hedge fund Bridgewater Associates, Ray Dalio, who has foreseen a new fall between 20% and 25%. Although it has in its background three assets with which to protect yourself from the next correction, according to Jing Pan on Yahoo Finance.

In a LinkedIn post in June, Dalio warns that the Fed tightening could lead to stagflation, an economic condition characterized by high inflation, but without the strong economic growth and employment that it usually brings. “In the long run, the Fed will most likely follow a middle path that will take the form of stagflation.”

And early last week, the Bridgewater Co-Chief Investment Officer Greg Jensenhe told Bloomberg that The Fed’s aggressive stance has yet to be fully appreciated.

“Taken together, let’s say asset markets are down 20% to 25%,” Jensen predicts.

If you’re wondering what to do about this bleak outlook, here’s a look at some of the biggest holdings in Dalio’s hedge fund.

Vanguard FTSE Emerging Markets ETF

According to Bridgewater’s last 13F filing with the SECthe background had 15.43 million shares of Vanguard FTSE Emerging Markets ETF at the end of June. With a market value of around $643 million at the timeVWO was the seventh largest holding in Dalio’s wallet.

VWO tracks inclusion rate FTSE Emerging Markets All Cap China A and provides investors with a Convenient exposure to equities in emerging markets such as China, Brazil and South Africa.

The ETF has more than 5,000 actions. Its major holdings include industry heavyweights such as chipmaker giant Taiwan Semiconductor Manufacturingthe Chinese tech giant Tencent Holdings and the Indian multinational conglomerate Reliance Industries.

In a recent conversation with another investment legend, Jeremy GranthamDalio said he is looking for countries with good income statements and balance sheets that can weather the storm.

“Emerging Asia is very interesting. India is interesting,” added Dalio.

Procter & Gamble

Bridgewater’s largest stake is a defensive action with the ability to generate cash returns to investors in different economic environments: Procter & Gamble.

In April, the P&G board announced a 5% dividend increase, what marks the 66th consecutive annual increase in company payments. Currently, the action offers a 2.5% annual dividend yield.

It’s easy to see why the company can keep that streak going.

P&G is a consumer staples giant with a portfolio of trusted brands like Bounty paper towels, Crest toothpaste, Gillette razors and Tide detergent. These are products that households buy on a regular basis, regardless of how the economy is doing.

pyg 29 08

Procter & Gamble It closed on the last Friday of August at $142.10 with a large bearish candle and the 70-period moving average has been above this last candle. Meanwhile, the Ei indicators are mixed.

Johnson & Johnson

With deeply entrenched positions in the consumer health, pharmaceutical and medical device markets, the healthcare giant Johnson&Johnson is another name that has provided consistent returns to investors throughout economic cycles.

Many of the company’s consumer health brands, such as Tylenol, Band-Aid and Listerine, are household names. Altogether, JNJ has 29 productseach capable of generating over a billion dollars in annual sales.

Johnson & Johnson not only records recurring annual earningsbut also makes them grow steadily: During the last 20 years, the Adjusted earnings have increased at an average annual rate of 8%.

The firm announced its 60th consecutive annual dividend increase in April and now yields 2.7%.

As of June 30, Bridgewater owned 4.33 million JNJ shares, worth approximately $769 million at the time and what made her the second largest fund holding.

jyj 29 08

Johnson&Johnson it said goodbye on Friday at $164.27, also with a bearish candlestick, and the location of the moving averages, the 70-period one above the 200-period one, would give us a bullish signal. Meanwhile, Ei indicators are mostly bearish.

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Ray Dalio (Bridgewater) foresees a further drop from 20% to 25%