How to find alpha: Bridgewater Associates' Co-CIO Karen Karniol-Tambour

Bullish:

• $JPY - Bullish on Japanese interest rates, expecting normalization of monetary policy to lead to higher rates.

  • “My favorite position there is definitely still being short the rates.”

    Karen·10:03
• $EUR - Bullish on the euro due to Europe's large structural surplus, despite weaker economic prospects.

  • “I still think the most attractive currency is the euro.”

    Karen·11:02
• $US_ECON - Optimistic about sustained US economic growth due to fiscal stimulus, income growth, and potential capex cycle.

  • “I actually think it [US economic growth] can [be sustained]. It's a very unique spot to be in so late into an expansion.”

    Karen·1:00
• $AI - Bullish on AI investment and adoption, expecting significant impact on workforce and economy, potentially surpassing previous technological shifts.

  • “You hear the Mag Sevens talking about how they feel like the risk of not investing is a lot greater than the risk of investing too much, that it's existential, that they gotta do more.”

    Karen·2:05

  • “There's a decent chance that AI is at least that event again. It could be bigger. It might hit a bigger share than 10% of the workforce.”

    Karen·22:00
• $CHINASTK - More positive view on Chinese stocks following recent policy announcements.

  • “I would skew more to stocks today than I would have, you know, a couple weeks ago.”

    Karen·9:01

Bearish:

• $USD - Bearish on the US dollar due to expectations of gradual Fed rate cuts to around 3%.

  • “So what I think the Fed is gonna do is their plan seems to be something like get to 3% at 25 basis point clips.”

    Karen·3:01