Bridgewater, the biggest hedge fund in the world, is out with its second-quarter letter:
On the global economy: "We estimate that in the past few months global growth has slowed from about 3.3% to 1.9% and that 80% of the world's economies have slowed, including all of the largest. The breadth of this slowdown creates a dangerous dynamic because, given the inter-connectedness of economies and capital flows, one country's decline tends to reinforce another's, making a self-reinforcing global decline more likely and a reversal more difficult to produce.
On the global economy: "We estimate that in the past few months global growth has slowed from about 3.3% to 1.9% and that 80% of the world's economies have slowed, including all of the largest. The breadth of this slowdown creates a dangerous dynamic because, given the inter-connectedness of economies and capital flows, one country's decline tends to reinforce another's, making a self-reinforcing global decline more likely and a reversal more difficult to produce.
On gold: "Gold bullion is also being supported by secularly increasing demand. Prior to the financial crisis, gold was substantially under-owned relative to financial assets, and despite stepped-up purchases of gold bullion by central banks and sovereign wealth funds, the shift toward greater holdings of the precious metal is still in its early stages. ... Speculative gold positions had been significantly reduced [by the end of the quarter] and as a result are less likely to be a bearish short-term driver going forward."
More information can be found online at http://www.goldbullionadvisors.com
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