Greg Jensen - Co-CIO of Bridgewater | Podcast | In Good Company | Norges Bank Investment Management

Key Takeaways

• The global economy is shifting towards 'modern mercantilism,' a reaction to China's rise, prioritizing national industry and geopolitical strength over free trade.
• This shift implies a move away from the previous neoliberal consensus towards greater government intervention and a zero-sum view of trade.
• Investors must adapt to mercantilism, recognizing that traditional economic models may no longer apply and that trade deficits are now viewed as problematic.
• Despite concerns about mercantilism, US equities have outperformed global equities over the last 15 years, though this trend is showing signs of reversal.
• AI is a transformative technological change, impacting geopolitics, markets, and all aspects of the macro world, requiring deep understanding.
• Capital is increasingly concentrated in the US and in illiquid assets, creating a potentially risky investment environment that requires careful analysis.
• Beneath the surface of calm market averages, significant shifts are occurring, particularly in the performance of US equities excluding AI-related stocks.
• Bridgewater's approach involves codifying human intuition into algorithms to understand economic and market dynamics, evolving towards AI-driven decision-making.