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Bridgewater Associates bets over $1 billion on market drop: WSJ

Published 11/22/2019, 06:20 AM
Updated 11/22/2019, 06:27 AM
Bridgewater Associates bets over $1 billion on market drop: WSJ

(Reuters) - Bridgewater Associates LP, a hedge fund founded by billionaire Ray Dalio, has bet more than $1 billion that stock markets around the world will fall by March, the Wall Street Journal reported on Friday, citing people familiar with the matter.

The bet, assembled over a span of months and executed by a handful of Wall Street firms, including Goldman Sachs Group Inc (N:GS) and Morgan Stanley (N:MS), would pay off for the world's biggest hedge fund if either the S&P 500 (SPX) or the Euro Stoxx 50 (STOXX50E) — or both — declines, the report said.

The bet is made up of put options, contracts that give investors the right to sell stocks at a specific price by a certain date. The options expire in March and currently represent one of the largest bearish bets against the market, the report added.

Bridgewater Associates was not immediately available for comment.

Latest comments

That Ray is a smart man.
Good trade actually. Downside is known and its only the option premuims. Upside is skewed high. They could very well have stops on those as well to limit loss more. Smarter trade than shorting
Did they bet on the Astros too. lol
lmao is that why market have been going up lately? banks are longing themselves while this guy shorts.
These traders are like baseball players. A couple small misses, then a home run. The media loves home runs. Thatks how ur name is made.
My bet is that we will get a big China deal and S&P will doubled by then.
I've been shorting the s&p for months. lost value but still holding onto my shorts.
Ray Dalio? the one that lost a fortune predicting a market crash in the 80s-90s?
history repeats itself. just a matter of time.
And who are you?
always remember that there aren't 100% win trade predictions so take a chill pill and delete your lame post
This is expected and i was waiting for it , i thought it will happened before the end of this year but i belive because of the ellection they try thoer best to hold things togather becaue the problem mot just falling the stock market only , the US dollar in my opinion will fall fown like we never wintness in the history. Ive been tell ppl around me about this for over a year and they think im dreaming .. its not just the stock market is over priced, real state is over priced , cridet debit over 1 trillion already , the 2-3 % grown its just stupid spending because we became stupid consumer that the big corporations turn us to another smart type of slavry. The deficit is over a trillion ... if i want to keep going i need probably days to talk about this the finanacail and moral crisis that we are in as humanity. So as denis said “ the clock is ticking “
Aw **** here we go again..
Dalio , Cooperman. Thanks, Guys !
Now we talking.
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