Bridgewater Makes $14 Billion Short Against European Stocks | Metals Mine

Bridgewater Makes $14 Billion Short Against European Stocks | Metals Mine

Bridgewater Makes $14 Billion Short Against European Stocks

From bnnbloomberg.ca

Bridgewater Associates, the world’s biggest hedge fund, has built up a $14 billion bet that shares in European companies will continue to sink amid the worsening coronavirus outbreak. The investment firm led by billionaire Ray Dalio made a string of wagers against stocks in countries from Germany to Italy, according to filings between March 9 and 12 compiled by Bloomberg. They include a $1 billion bet against software company SAP SE and a $715 million wager against semiconductor equipment maker ASML Holding NV. The wager hasn’t been enough to protect the firm’s main hedge fund from steep losses. Bridgewater’s ... (full story)

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Mar 17, 2020 2:19am

Quoting Banditten

Disliked

A little late to the party.. they will get burned on those short positions

Ignored

Really? They were building their positions, so probably are in the money now, big money. Next is the US, the biggest corporate debt of the history of humanity. You tell me how those companies will survive. Remember, this is just starting. Europe goes down, China goes down, you think the US will survive?
This is the beginning of the biggest recession in history, not the end of the world but things will never be the same.
And btw. smart money will short any rally.If the numbers are right, then half of the world population will get sick, and probably 100 million will die. That´s the wisdom of nature, clean up the old and the weak.Nature can give a hoot about economy and debts..it´s been playing it´s own, perfect game, since billions of years, and btw. we are nature.

6

Mar 17, 2020 3:00am

Quoting cuchuflito

Disliked

{quote} Really? They were building their positions, so probably are in the money now, big money. Next is the US, the biggest corporate debt of the history of humanity. You tell me how those companies will survive. Remember, this is just starting. Europe goes down, China goes down, you think the US will survive? This is the beginning of the biggest recession in history, not the end of the world but things will never be the same. And btw. smart money will short any rally.If the numbers are right, then half of the world population will get sick, and...

Ignored

You shorted every rally since 2008?

I dont know if this will be the biggest recession ever seen and I dont waste thoughts thinking about it. I trade the charts and take whatever comes my way but I dont excel in guessing.

Smart money? Så to Bridgewater I read this Ago be a hedge on their long positions which are significantly under water. But of course they scaled into the positions.

2

Mar 17, 2020 1:51pm

I find it interesting they talk about their position now. Why? Isn't it even a no-no talking one's book? Isn't that something SEC would look into?
I'd say they'd either love for it to move lower so they can make at least some bucks..
Or hoping to catch late shorts in a squeeze up having the opposite position.. Either way, it's weird.
Somewhat like "usual" GS calls on market direction.
My 2c.

1

Mar 17, 2020 8:19am

Quoting cuchuflito

Disliked

{quote} Really? They were building their positions, so probably are in the money now, big money. Next is the US, the biggest corporate debt of the history of humanity. You tell me how those companies will survive. Remember, this is just starting. Europe goes down, China goes down, you think the US will survive? This is the beginning of the biggest recession in history, not the end of the world but things will never be the same. And btw. smart money will short any rally.If the numbers are right, then half of the world population will get sick, and...

Ignored

not sure what you smoke man, but doesn't look that good!
Have you read the article, seems the bridge water is actually under water and this may well be an attempt to chase the price and hedge other position. The way I see it? they held their long too long and losing on them, and now chasing the shorts... they'll lose on them... but that's just a guess.
Wrt the virus, most likely finished in 2 to 3 months... possible, but unlikely, but possible, that there is a killer mutation that'll wipe the Earth, but well, at that stage nobody will care about the market anyway. The only thing that the virus is highlighting, is the poor conditions of the health services in the West, hence the attempt to flatten the curve (not the yield curve

). If the health services were in a good shape, covid-19 would have barely made the news.
And finally about the companies that won't survive, well maybe then they shouldn't... some have taken the bad habit that any company anytime for any reason will be bailed out... f**k that, that is, imho, the biggest root of nowadays problems with economy, which is now like a child that has been overprotected, making a tantrum for more sugary shit, instead of knowing how to weather bad times, lose some companies, and build new one when things are getting better. I mean it's not like there is a huge number of companies that have a >100 years history. They come, they go, that's life, not the end of the world.

1

Mar 17, 2020 2:10am

So they short while Vix index is higher than the 2008 crisis ? smart move...

1

Mar 17, 2020 1:31pm

Many seem to think of "experts" as objective analysts. They are not. They are all market participants. Of course the market can drop further. But I think we have seen the most.

1

Mar 17, 2020 9:29am

Quoting Maxthetrader

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Luvin all the doom and gloom. The uglier the news is, the better. This is the very place where many, many, many BIG BULL RUNS have started. Check your history if you are skeptical. Bear markets NEVER start on bad news or end on good news. It's always just the opposite. Bulls want the news to be super ugly, ugly, ugly!!!

Ignored

We understand how you feel about it. There is no need to keep repeating the same thing over and over.

Mar 17, 2020 10:24am

Quoting ohakaba

Disliked

{quote} Guess you be amongst the half of the population, prophet of doom....

Ignored

Just nature, btw.simply get the numbers from science, not me, and I´m not a prophet...The only way to stop the meltdown is if they find some vaccine soon, even if it works a little, still, the damage done will take decades to recover.
Just take the tourism industry, destroyed, and that accounts for 1 job in ten. Airports, hotels, restaurants, travel agencies, airlines, airplane industry...Would you like to buy a hotel now? Or an airplane, they are all on sale...worldwide...
I live in Europe, any idea what is happening here?
Wake up people, the biggest problem now, is families locked in their apartments with 4 kids, for how long? China´s divorce rate up in the sky...

Mar 20, 2020 2:32pm

Not talking About their books? They just send out a public statement in china that rumoues about their financial stability was false but they have taken considerable water in. They presses the long side to the extreme but now we Know who were the buyers all the way up

Mar 17, 2020 11:58am — Edited

You pick and chose, are they only teasing Dumb Money (DM) to go into "the trap" ? Or are they simply DM themselves (dont think this so - they need liquidity on the other side of their buys). The main party is over, as mentioned by Banditten...."Fy flade for en fest".....LOL) even there may be some after shakes, wip sawing around and maybe some lower too.

I did all my shorts from the period before Christmas untill end Jan, a bit early I realized after, but took some profit earlier, end Jan / early Feb, but also some last week. Both in US & Chinese Indexes (instead of asking me about details, look at my posts back from period of Dec to end Jan).

Did I know about this ?….haha. Of course I did not, I only knew that US Markets were over...over - heated, and all and everyone was "buying to the sounds of the trumphets", and even a taxi driver was telling me about the intelligent money.....time to sell.

Now, as "the blood flows in the streets" (also Baron Rothshields famous words and indicators for buying, and the one above for selling - always works), I am more into looking at Oil Futures and Call Options for the Oil Majors. Brent dropped 50%, will it drop more, yeah, I think so, but we should see bottom around USD20 - 30/bbl, so in a 2 year perspective it is a good accummulation zone. It worked very well for me back in 2015, and will do same now, I think. Also do some Call options on the 3 larger Pharma companies, even some uncertainty of who of them will hit the Jackpot here (a Vaccine). This last a bit more risky, of whom, but all is cheap now. My opinion is that there are a few better tickets in the markets than selling short….like Bridgewater proposed, but we will see if they make some in their large USD 14 bln bet, if it is real.....?!
It is like one that breaks into the bar after they closed at 3am, and the guest left for the nachspiel at home. We are not that crazy for a party and a drink, or ?

Mar 17, 2020 9:20am

Luvin all the doom and gloom. The uglier the news is, the better. This is the very place where many, many, many BIG BULL RUNS have started. Check your history if you are skeptical.

Bear markets NEVER start on bad news or end on good news. It's always just the opposite.

Bulls want the news to be super ugly, ugly, ugly!!!

Mar 17, 2020 3:20am

Quoting cuchuflito

Disliked

{quote} Really? They were building their positions, so probably are in the money now, big money. Next is the US, the biggest corporate debt of the history of humanity. You tell me how those companies will survive. Remember, this is just starting. Europe goes down, China goes down, you think the US will survive? This is the beginning of the biggest recession in history, not the end of the world but things will never be the same. And btw. smart money will short any rally.If the numbers are right, then half of the world population will get sick, and...

Ignored

Guess you be amongst the half of the population, prophet of doom....

Mar 17, 2020 2:54am

Quoting cuchuflito

Disliked

And btw. smart money will short any rally.

Ignored

Banks are "smart money", hedge funds are "dumb money".

Mar 17, 2020 2:45am

Bridgewater has huge loss, short only attempt hedge.
Don't shoot messenger.

Mar 17, 2020 2:06am

A little late to the party.. they will get burned on those short positions

Mar 17, 2020 11:00am

Decades? Thats a long time to recover. Lets touch base on this in 2035 and see where we are. But I will likely be long before that

Mar 17, 2020 12:25pm

Most likely the statement is made to create sufficient liquidity to cover their shorts at a decent low level, and prevent a rally.

Mar 17, 2020 10:02am

bnnbloomberg is lying.actually they have bought the stocks instead of short because this is the time of buy not selling. how funny is this.

Mar 17, 2020 10:12am

Only a complete spanner would short after a move down like this. I guess they must be a complete tool box.

Trader#D60A

Mar 18, 2020 8:50am

Quoting plukin

Disliked

I find it interesting they talk about their position now. Why? Isn't it even a no-no talking one's book? Isn't that something SEC would look into? I'd say they'd either love for it to move lower so they can make at least some bucks.. Or hoping to catch late shorts in a squeeze up having the opposite position.. Either way, it's weird. Somewhat like "usual" GS calls on market direction. My 2c.

Ignored

Bridgewater isn't talking about their positions, Bloomberg reported it "according to filings made between March 9 and 12th", it says so in the article. I do believe you are correct about the talking one's book, hence the fines TSLA paid when Musk talked about private funding.

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Mar 17, 2020 1:29am
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