Bridgewater Co-Chief Investment Officer Karen Karniol-Tambour said investors should look outside the US for investing opportunities as the Federal Reserve continues raising rates to combat inflation.
(Bloomberg) — Bridgewater Co-Chief Investment Officer Karen Karniol-Tambour said investors should look outside the US for investing opportunities as the Federal Reserve continues raising rates to combat inflation.
Chinese assets provide significant diversification “relative to almost any asset you can buy,” Karniol-Tambour said in an interview with Bloomberg TV.
“This is definitely a diversification play that investors should be looking at very seriously,” she added.
But investors “have to consider their risk tolerance” in terms of geopolitical tensions and other factors, Karniol-Tambour said.
She also cited Japan as one area where persistent inflation isn’t a problem for investors.
Domestically, she said, investors should move their fixed-income investments to inflation-linked assets as the US continues to battle inflation.
Federal Reserve Chairman Jerome Powell’s congressional testimony yesterday rattled markets after he said the central bank will likely raise rates higher than previously thought after stronger-than-expected economic data.
“I don’t think Powell has any choice,” Karniol-Tambour said of rate hikes.
“He can’t allow on his watch for inflation to get out of control.”
Karniol-Tambour was named Bridgewater’s third co-chief investment officer last month.
Read more: Bridgewater Names 37-Year-Old as Its First Female Co-CIO
She shares the role with Greg Jensen, 48, and Bob Prince, 64, and is the first woman to hold the firm’s most-senior investing job.
–With assistance from Jonathan Ferro.
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