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By David Reid, CNBC
The world's largest hedge fund has made the astonishing claim that it's bearish on almost all financial asset classes, according to the website ZeroHedge.
The finance blog highlighted a conclusion from Bridgewater Associate's latest "Daily Observation" note Tuesday, authored by the firm's co-CIO Greg Jensen.
"We are bearish on financial assets as the U.S. economy progresses toward the late cycle, liquidity has been removed, and the markets are pricing in a continuation of recent conditions despite the changing backdrop," Bridgewater said.
The hedge fund's forecast also pointed to a tightening of conditions for the U.S. economy as tailwinds from both the Federal Reserve and White House ease off.
"2019 is setting up to be a dangerous year, as the fiscal stimulus rolls off while the impact of the Fed's tightening will be peaking," it added.
The hedge fund said it is skeptical that a "picture of calm" that is currently priced into markets will actually play out.
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