“Co-CIO Greg Jensen on the Vulnerabilities Ahead,” Greg Jensen of Bridgewater reflects on the resilience of the financial market in the face of significant economic challenges, including the second, third, and fourth biggest banking failures in US history. Jensen expresses concern about the potential complacency in the markets due to extreme liquidity conditions and the risks of central bank balance sheets and sovereign deficits being too high. He also warns of geopolitical and political instability, including two “cold wars” brewing, and the destructive use of AI. Jensen emphasizes the importance of expecting the unexpected, including potential risks from inflation, currency weakness, and federal deficits. He also discusses the uncertainties and potential shocks in the global economy, particularly outside the United States, and the emergence of a more fragmented currency landscape. Throughout the discussion, Jensen stresses the need for businesses and investors to be agile and adaptable to the changing environment.
