{"id":80744,"date":"2023-11-04T20:04:21","date_gmt":"2023-11-05T00:04:21","guid":{"rendered":"https:\/\/ifintechworld.com\/markets\/forget-u-s-stocks-for-now-invest-here-instead-says-bridgewaters-co-investment-chief\/"},"modified":"2023-11-04T20:04:25","modified_gmt":"2023-11-05T00:04:25","slug":"forget-u-s-stocks-for-now-invest-here-instead-says-bridgewaters-co-investment-chief","status":"publish","type":"post","link":"https:\/\/ifintechworld.com\/?p=80744","title":{"rendered":"Forget U.S. stocks for now. Invest here instead, says Bridgewater\u2019s co\u2013investment chief"},"content":{"rendered":"
\n

As a co\u2013chief investment officer of Bridgewater Associates, the world\u2019s biggest hedge-fund firm, Karen Karniol-Tambour scours global markets for good investment opportunities. She\u2019s increasingly finding them outside the U.S.<\/p>\n

\u201cI\u2019m definitely a little bit bearish on U.S. stocks, and I especially don\u2019t like their valuation relative to other opportunities around the world,\u201d Karniol-Tambour said in an interview with MarketWatch. \u201cU.S. stocks are pricing in perfection because what\u2019s happened is the U.S. has just outperformed the world for so long.\u201d<\/p>\n

\n
<\/p>\n

<\/p>\n

\n Karen Karniol-Tambour says the Fed will struggle to cut rates.
\n <\/figcaption><\/figure>\n<\/p><\/div>\n

At age 38, Karniol-Tambour has watched U.S. stocks outperform for much of her professional career, as she climbed the ranks at Bridgewater before being named co\u2013investment chief earlier this year. With the retirement of Ray Dalio and the leadership change at Bridgewater, Karniol-Tambour is set to play an outsized role at the firm for years to come and lands on the MarketWatch 50 list of the most influential people in markets.\u00a0<\/p>\n

When U.S. stocks started to outperform stocks in other countries years ago, Karniol-Tambour recalls, U.S. stock valuations were relatively low and positive earnings surprises would boost them. But these days, she says, valuations for U.S. stocks reflect pretty reasonable expectations for earnings.\u00a0<\/p>\n

\u201cIn other words, I don\u2019t think companies are going to struggle that much because I don\u2019t expect growth to be a total disaster. They\u2019re not amazing. I think prospects are OK. The problem is, it\u2019s already in the price. Valuation already reflects that,\u201d Karniol-Tambour said. \u201cSo it\u2019s just much easier to get a downside surprise, whereas in other parts of the world there\u2019s much weaker earnings expected. It\u2019s just not already valued. It\u2019s not already in the price. It\u2019s much easier to outperform.\u201d<\/p>\n

Specifically, Karniol-Tambour referenced the exposure in so many portfolios to big tech companies, such as Apple
\n AAPL,
\n -0.52%<\/bg-quote>,<\/span>
\n Microsoft
\n MSFT,
\n +1.29%<\/bg-quote>
\n and Alphabet
\n GOOGL,
\n +1.26%<\/bg-quote><\/p>\n

GOOG,
\n +1.39%<\/bg-quote>,<\/span>
\n that have driven so much of the gains of the S&P 500
\n SPX.<\/span>
\n At some point, investors will view a portfolio rebalancing as prudent, she added, making U.S. stocks more vulnerable.\u00a0<\/p>\n

Opinion:<\/strong> This market pro likes the \u2018Magnificent Seven\u2019 but thinks stocks are on thin ice<\/p>\n

So where else in the world can investors go? Karniol-Tambour thinks they should take a close look at Japan. These days, when Karniol-Tambour talks about the opportunities in Japan, she often feels people look at her like she\u2019s stuck in the 1980s. But Karniol-Tambour says that because investors ignored Japan for so long \u2014 not buying Japanese stocks or bonds \u2014 the result was that Japanese companies just didn\u2019t even think about returning money to shareholders. But that is starting to change.<\/p>\n

\u201cYou have some of the best valuations because of that history of that success not already being priced in,\u201d Karniol-Tambour said.\u00a0<\/p>\n

Back home in the U.S., Karniol-Tambour says the economy remains pretty strong, as several forces offset the Federal Reserve\u2019s tightening efforts. Her projection is that the economy will gradually weaken but that inflation will remain a little too sticky and limit the U.S. central bank\u2019s ability to come to the rescue.\u00a0\u00a0<\/p>\n

\u201cAs the economy stays strong and just kind of gradually grinds down, you don\u2019t get enough decline in inflation to really make the Federal Reserve comfortable with really strongly easing into those conditions,\u201d says Karniol-Tambour. \u201cSo could they ease a little bit? Sure. Could they ease a lot? I think that\u2019s challenging to see without a very significant economic slowdown.\u201d<\/p>\n

Will there be a recession in the U.S. next year? Karniol-Tambour says the odds are reasonable and the Fed will have a tough time responding the way it has in recent years. \u201cEventually, the fact that you can\u2019t ease just changes the game from the one we\u2019ve gotten familiar with where any slowdown gets immediately reversed.\u201d<\/p>\n<\/p><\/div>\n<\/div>\n

Read the full article here<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

As a co\u2013chief investment officer of Bridgewater Associates, the world\u2019s biggest hedge-fund firm, Karen Karniol-Tambour scours global markets for good investment opportunities. She\u2019s increasingly finding them outside the U.S. \u201cI\u2019m definitely a little bit bearish on U.S. stocks, and I especially don\u2019t like their valuation relative to other opportunities around the world,\u201d Karniol-Tambour said in […]<\/p>\n","protected":false},"author":1,"featured_media":80745,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"gallery","meta":{"footnotes":""},"categories":[241],"tags":[83],"class_list":["post-80744","post","type-post","status-publish","format-gallery","has-post-thumbnail","hentry","category-markets","tag-featured","post_format-post-format-gallery"],"yoast_head":"\nForget U.S. stocks for now. Invest here instead, says Bridgewater\u2019s co\u2013investment chief | iFintechWorld<\/title>\n<meta name=\"description\" content=\"As a co\u2013chief investment officer of Bridgewater Associates, the world\u2019s biggest hedge-fund firm, Karen Karniol-Tambour scours global markets for good\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/ifintechworld.com\/?p=80744\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Forget U.S. stocks for now. Invest here instead, says Bridgewater\u2019s co\u2013investment chief | iFintechWorld\" \/>\n<meta property=\"og:description\" content=\"As a co\u2013chief investment officer of Bridgewater Associates, the world\u2019s biggest hedge-fund firm, Karen Karniol-Tambour scours global markets for good\" \/>\n<meta property=\"og:url\" content=\"https:\/\/ifintechworld.com\/?p=80744\" \/>\n<meta property=\"og:site_name\" content=\"iFintechWorld\" \/>\n<meta property=\"article:published_time\" content=\"2023-11-05T00:04:21+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2023-11-05T00:04:25+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/ifintechworld.com\/wp-content\/uploads\/2023\/11\/horizontal.jpeg\" \/>\n\t<meta property=\"og:image:width\" content=\"1320\" \/>\n\t<meta property=\"og:image:height\" content=\"741\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"News Room\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"News Room\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"3 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\/\/ifintechworld.com\/?p=80744#article\",\"isPartOf\":{\"@id\":\"https:\/\/ifintechworld.com\/?p=80744\"},\"author\":{\"name\":\"News Room\",\"@id\":\"https:\/\/ifintechworld.com\/#\/schema\/person\/6224724fd4116361255b179dc5c70b61\"},\"headline\":\"Forget U.S. stocks for now. Invest here instead, says Bridgewater\u2019s co\u2013investment chief\",\"datePublished\":\"2023-11-05T00:04:21+00:00\",\"dateModified\":\"2023-11-05T00:04:25+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/ifintechworld.com\/?p=80744\"},\"wordCount\":678,\"commentCount\":0,\"publisher\":{\"@id\":\"https:\/\/ifintechworld.com\/#organization\"},\"keywords\":[\"Featured\"],\"articleSection\":[\"Markets\"],\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"CommentAction\",\"name\":\"Comment\",\"target\":[\"https:\/\/ifintechworld.com\/?p=80744#respond\"]}]},{\"@type\":\"WebPage\",\"@id\":\"https:\/\/ifintechworld.com\/?p=80744\",\"url\":\"https:\/\/ifintechworld.com\/?p=80744\",\"name\":\"Forget U.S. stocks for now. Invest here instead, says Bridgewater\u2019s co\u2013investment chief | iFintechWorld\",\"isPartOf\":{\"@id\":\"https:\/\/ifintechworld.com\/#website\"},\"datePublished\":\"2023-11-05T00:04:21+00:00\",\"dateModified\":\"2023-11-05T00:04:25+00:00\",\"description\":\"As a co\u2013chief investment officer of Bridgewater Associates, the world\u2019s biggest hedge-fund firm, Karen Karniol-Tambour scours global markets for good\",\"breadcrumb\":{\"@id\":\"https:\/\/ifintechworld.com\/?p=80744#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/ifintechworld.com\/?p=80744\"]}]},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\/\/ifintechworld.com\/?p=80744#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\/\/ifintechworld.com\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"Forget U.S. stocks for now. Invest here instead, says Bridgewater\u2019s co\u2013investment chief\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\/\/ifintechworld.com\/#website\",\"url\":\"https:\/\/ifintechworld.com\/\",\"name\":\"Repay Down\",\"description\":\"Latest Personal Finance News, Tips and Updates\",\"publisher\":{\"@id\":\"https:\/\/ifintechworld.com\/#organization\"},\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\/\/ifintechworld.com\/?s={search_term_string}\"},\"query-input\":\"required name=search_term_string\"}],\"inLanguage\":\"en-US\"},{\"@type\":\"Organization\",\"@id\":\"https:\/\/ifintechworld.com\/#organization\",\"name\":\"Repay Down\",\"url\":\"https:\/\/ifintechworld.com\/\",\"logo\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/ifintechworld.com\/#\/schema\/logo\/image\/\",\"url\":\"https:\/\/ifintechworld.com\/wp-content\/uploads\/2023\/04\/rep-logo-dark.png\",\"contentUrl\":\"https:\/\/ifintechworld.com\/wp-content\/uploads\/2023\/04\/rep-logo-dark.png\",\"width\":558,\"height\":90,\"caption\":\"Repay Down\"},\"image\":{\"@id\":\"https:\/\/ifintechworld.com\/#\/schema\/logo\/image\/\"}},{\"@type\":\"Person\",\"@id\":\"https:\/\/ifintechworld.com\/#\/schema\/person\/6224724fd4116361255b179dc5c70b61\",\"name\":\"News Room\",\"image\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/ifintechworld.com\/#\/schema\/person\/image\/\",\"url\":\"https:\/\/ifintechworld.com\/wp-content\/uploads\/2023\/04\/avatar_user_1_1682606986-96x96.png\",\"contentUrl\":\"https:\/\/ifintechworld.com\/wp-content\/uploads\/2023\/04\/avatar_user_1_1682606986-96x96.png\",\"caption\":\"News Room\"},\"sameAs\":[\"https:\/\/ifintechworld.com\"],\"url\":\"https:\/\/ifintechworld.com\/?author=1\"}]}<\/script>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"Forget U.S. stocks for now. Invest here instead, says Bridgewater\u2019s co\u2013investment chief | iFintechWorld","description":"As a co\u2013chief investment officer of Bridgewater Associates, the world\u2019s biggest hedge-fund firm, Karen Karniol-Tambour scours global markets for good","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/ifintechworld.com\/?p=80744","og_locale":"en_US","og_type":"article","og_title":"Forget U.S. stocks for now. Invest here instead, says Bridgewater\u2019s co\u2013investment chief | iFintechWorld","og_description":"As a co\u2013chief investment officer of Bridgewater Associates, the world\u2019s biggest hedge-fund firm, Karen Karniol-Tambour scours global markets for good","og_url":"https:\/\/ifintechworld.com\/?p=80744","og_site_name":"iFintechWorld","article_published_time":"2023-11-05T00:04:21+00:00","article_modified_time":"2023-11-05T00:04:25+00:00","og_image":[{"width":1320,"height":741,"url":"https:\/\/ifintechworld.com\/wp-content\/uploads\/2023\/11\/horizontal.jpeg","type":"image\/jpeg"}],"author":"News Room","twitter_card":"summary_large_image","twitter_misc":{"Written by":"News Room","Est. reading time":"3 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"Article","@id":"https:\/\/ifintechworld.com\/?p=80744#article","isPartOf":{"@id":"https:\/\/ifintechworld.com\/?p=80744"},"author":{"name":"News Room","@id":"https:\/\/ifintechworld.com\/#\/schema\/person\/6224724fd4116361255b179dc5c70b61"},"headline":"Forget U.S. stocks for now. Invest here instead, says Bridgewater\u2019s co\u2013investment chief","datePublished":"2023-11-05T00:04:21+00:00","dateModified":"2023-11-05T00:04:25+00:00","mainEntityOfPage":{"@id":"https:\/\/ifintechworld.com\/?p=80744"},"wordCount":678,"commentCount":0,"publisher":{"@id":"https:\/\/ifintechworld.com\/#organization"},"keywords":["Featured"],"articleSection":["Markets"],"inLanguage":"en-US","potentialAction":[{"@type":"CommentAction","name":"Comment","target":["https:\/\/ifintechworld.com\/?p=80744#respond"]}]},{"@type":"WebPage","@id":"https:\/\/ifintechworld.com\/?p=80744","url":"https:\/\/ifintechworld.com\/?p=80744","name":"Forget U.S. stocks for now. Invest here instead, says Bridgewater\u2019s co\u2013investment chief | iFintechWorld","isPartOf":{"@id":"https:\/\/ifintechworld.com\/#website"},"datePublished":"2023-11-05T00:04:21+00:00","dateModified":"2023-11-05T00:04:25+00:00","description":"As a co\u2013chief investment officer of Bridgewater Associates, the world\u2019s biggest hedge-fund firm, Karen Karniol-Tambour scours global markets for good","breadcrumb":{"@id":"https:\/\/ifintechworld.com\/?p=80744#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/ifintechworld.com\/?p=80744"]}]},{"@type":"BreadcrumbList","@id":"https:\/\/ifintechworld.com\/?p=80744#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/ifintechworld.com\/"},{"@type":"ListItem","position":2,"name":"Forget U.S. stocks for now. Invest here instead, says Bridgewater\u2019s co\u2013investment chief"}]},{"@type":"WebSite","@id":"https:\/\/ifintechworld.com\/#website","url":"https:\/\/ifintechworld.com\/","name":"Repay Down","description":"Latest Personal Finance News, Tips and Updates","publisher":{"@id":"https:\/\/ifintechworld.com\/#organization"},"potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/ifintechworld.com\/?s={search_term_string}"},"query-input":"required name=search_term_string"}],"inLanguage":"en-US"},{"@type":"Organization","@id":"https:\/\/ifintechworld.com\/#organization","name":"Repay Down","url":"https:\/\/ifintechworld.com\/","logo":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/ifintechworld.com\/#\/schema\/logo\/image\/","url":"https:\/\/ifintechworld.com\/wp-content\/uploads\/2023\/04\/rep-logo-dark.png","contentUrl":"https:\/\/ifintechworld.com\/wp-content\/uploads\/2023\/04\/rep-logo-dark.png","width":558,"height":90,"caption":"Repay Down"},"image":{"@id":"https:\/\/ifintechworld.com\/#\/schema\/logo\/image\/"}},{"@type":"Person","@id":"https:\/\/ifintechworld.com\/#\/schema\/person\/6224724fd4116361255b179dc5c70b61","name":"News Room","image":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/ifintechworld.com\/#\/schema\/person\/image\/","url":"https:\/\/ifintechworld.com\/wp-content\/uploads\/2023\/04\/avatar_user_1_1682606986-96x96.png","contentUrl":"https:\/\/ifintechworld.com\/wp-content\/uploads\/2023\/04\/avatar_user_1_1682606986-96x96.png","caption":"News Room"},"sameAs":["https:\/\/ifintechworld.com"],"url":"https:\/\/ifintechworld.com\/?author=1"}]}},"amp_enabled":true,"_links":{"self":[{"href":"https:\/\/ifintechworld.com\/index.php?rest_route=\/wp\/v2\/posts\/80744","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/ifintechworld.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/ifintechworld.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/ifintechworld.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/ifintechworld.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=80744"}],"version-history":[{"count":1,"href":"https:\/\/ifintechworld.com\/index.php?rest_route=\/wp\/v2\/posts\/80744\/revisions"}],"predecessor-version":[{"id":80746,"href":"https:\/\/ifintechworld.com\/index.php?rest_route=\/wp\/v2\/posts\/80744\/revisions\/80746"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/ifintechworld.com\/index.php?rest_route=\/wp\/v2\/media\/80745"}],"wp:attachment":[{"href":"https:\/\/ifintechworld.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=80744"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/ifintechworld.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=80744"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/ifintechworld.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=80744"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}