The Market Phenomenon That’s Worrying Bridgewater

The world’s largest hedge fund firm says U.S. stock valuations hinge on what happens to margin growth — which it says is under pressure.

Ray Dalio (Jason Alden/Bloomberg)

Ray Dalio

(Jason Alden/Bloomberg)

Bridgewater Associates thinks companies will have a tough time maintaining or increasing profit margins after a 25-year rise — and this shift in direction will potentially have major ramifications for the stock market, the firm argued in a recent client note.

“The long-term valuation of U.S.

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