Dalio’s Bridgewater Warns of Possible ‘Lost Decade’ for Stocks
- Profit margins for U.S. companies may be at risk in long term
- Level of corporate debt set to rise because of the pandemic
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A reversal of the strong growth seen over the years in U.S. corporate profit margins could lead to a “lost decade” for equity investors, Ray Dalio’s Bridgewater Associates warns.
The margins, which have provided a big chunk of the excess return of equities over cash, could face a shift that would go beyond the current cyclical downturn in earnings, Bridgewater analysts wrote in a note to clients dated June 16.