Bridgewater’s CIOs say the macro environment is being shaped by how highly proactive policy makers navigate around economic and market limits. They touch on different countries around the globe and say “it would take almost a miracle for US assets to repeat the last decade.”

Key Takeaways:

• Policy room narrows: US policy makers have eased as inflation receded, but asset pricing now reflects high growth and low inflation assumptions
• Global divergence grows: Countries like Japan, China, and Brazil face distinct limits, driving varied market paths and policy responses
• AI as a swing factor: Sustained productivity gains from AI could extend asset strength, but outcomes remain uncertain and vary by adoption