• Contact Us
  • About Us
Saturday, December 24, 2022
  • Login
MetroBusinessNews
  • Home
  • Economy
  • Politics
  • News
  • Companies and Markets
  • Energy
  • Sports
  • Real Estate
No Result
View All Result
  • Home
  • Economy
  • Politics
  • News
  • Companies and Markets
  • Energy
  • Sports
  • Real Estate
No Result
View All Result
MetroBusinessNews
No Result
View All Result
Home News

Bridgewater’s Ray Dalio Expects Stocks To Fall 20% On Rates Hike To 4.5%

metro by metro
September 16, 2022
in News, World
0
Bridgewater’s Ray Dalio Expects Stocks To Fall 20% On Rates Hike To 4.5%
0
SHARES
0
VIEWS

Read Also

Nigerians Going Through Dark Tunnel Of  Apprehension, Security, Safety-NLC

CNS Accuses Personnel Of Colluding With Criminals To Steal Crude Oil 

Senate Passes Business Felicitation Bill

Billionaire Ray Dalio, founder of one of the world’s biggest hedge funds, has predicted a sharp plunge in stock markets as the U.S. Federal Reserve raises interest rates aggressively to tame inflation.

“I estimate that a rise in rates from where they are to about 4.5 percent will produce about a 20 percent negative impact on equity prices,” Bridgewater Associates’ founder Dalio wrote in a LinkedIn post on Tuesday.

His comments, according to Reuters, came the day data showed U.S. consumer prices unexpectedly rose in August.

The inflation data raised fears of another outsized interest rate hike next week and sent stock markets into a downward spiral.

“…interest rates will go up … other markets will go down … the economy will be weaker than expected,” Dalio wrote.

“This will bring private sector credit growth down, which will bring private sector spending and, hence, the economy down with it.”

Dalio’s bearish view further ignites concerns about valuations in U.S. stocks.

While the S&P 500 index’s forward price-to-earnings multiple is far below what it commanded at the start of the year, investors believe stock valuations may have to fall further to reflect the risks of rising bond yields and a looming recession.

Rising mortgage rates are already weighing on the housing sector as the average interest rate on the most popular U.S. home loan rose above 6% for the first time since 2008.

A significant economic contraction will be required, but it will take a while to happen because cash levels and wealth levels are now relatively high, Dalio wrote.
ALSO READ:NCAA Suspends Azman Air’s License Over N1.2bn Debt, More Airlines May Be Affected Soon
“We are now seeing that happen. For example, while we are seeing a significant weakening in the interest rate and debt dependent sectors like housing, we are still seeing relatively strong consumption spending and employment.”

Previous Post

Access Grows Pre-Tax Profit To N97.8b In Half Year

Next Post

Ruto’s Kenya scraps Petrol Subsidy After President Warned As Unsustainable

Related Posts

Nigerians Going Through Dark Tunnel Of  Apprehension, Security, Safety-NLC
Breaking

Nigerians Going Through Dark Tunnel Of  Apprehension, Security, Safety-NLC

December 23, 2022
CNS Accuses Personnel Of Colluding With Criminals To Steal Crude Oil 
Breaking

CNS Accuses Personnel Of Colluding With Criminals To Steal Crude Oil 

December 22, 2022
Buhari sends 2017 draft budget to Senate for approval
Breaking

Senate Passes Business Felicitation Bill

December 21, 2022
Equities Market Upbeat Performance Persists… ASI Gains 0.9% W/W
News

Capital Market Sets To Deepen As SEC Approves NGX Technology Board Listing Rules

December 18, 2022
Next Post
BREAKING NEWS: Kenya Supreme Court Upholds Presidential Election Results Declaring Ruto As President Elect, Says No Evidence-50% Plus-One Threshold Not Met

Ruto's Kenya scraps Petrol Subsidy After President Warned As Unsustainable

Shell Agrees To Pay €15m To Ogoni Farmers, Niger Delta Communities Over Pollution

Shell Agrees To Pay €15m To Ogoni Farmers, Niger Delta Communities Over Pollution

December 23, 2022
Nigeria Lost $144.1Bn In 4 Yrs To  CBN’s Exchange Rate Policy— World Bank

Nigeria Lost $144.1Bn In 4 Yrs To  CBN’s Exchange Rate Policy— World Bank

December 23, 2022
Nigerians Going Through Dark Tunnel Of  Apprehension, Security, Safety-NLC

Nigerians Going Through Dark Tunnel Of  Apprehension, Security, Safety-NLC

December 23, 2022
ADVERTISEMENT
ADVERTISEMENT
MetroBusinessNews

© 2022 Metro Business News

Navigate Site

  • Contact Us
  • About Us

Follow Us

No Result
View All Result
  • Home
  • Economy
  • Politics
  • News
  • Companies and Markets
  • Energy
  • Sports
  • Real Estate

© 2022 Metro Business News

Welcome Back!

Login to your account below

Forgotten Password?

Retrieve your password

Please enter your username or email address to reset your password.

Log In
Go to mobile version