A former executive of the hedge fund founded by billionaire Ray Dalio is warning that the market for US debt will soon hit a rough spot.
In a new CNBC Television interview, ex-Bridgewater Associates chief investment strategist Rebecca Patterson addresses how the US dollar has lost about 10% of its value year-to-date, its worst performance in over 50 years.
“I think there are three main things driving the dollar [devaluation]. One is slightly lower frontend rates, interest rates over this period because currencies trade on rate differentials.
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But I think more importantly and what’s different this time is that you’re seeing both re-allocation out of the US both by Americans diversifying and foreigners pulling back slightly. And then third and really importantly is hedging. So
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