Ray Dalio with a sequential bet against the bullish stock market - this time through Gold ETFs

Dalio apparently decided that the long bull market of shares is over, this time announcing that it increases long positions in gold. Bridgewater Associates, run by Ray Dalian, has increased its long position on SPDR Gold Shares and iShares Gold Trust. The assets in the listed stock exchanges rose for the fourth consecutive quarter, while metal jumped 1.8 percent in December alone. The weak dollar and low inflation were at the heart of gold growth.

In August, Dalian recommended investors to spend 5% to 10% on gold, once again proved right. Despite the registered growth, at the end of December, Dalio increased its exposure to gold through the SPDR Gold Shares ETF from 14091 ETF-a to 3.91mil. ETF-a. Regarding the iShares Gold ETF, there is an increase from 34792 ETFs to 11.3m.

What are the cash flows from the beginning of the year?

SPDR Gold Shares The ETF reports a negative cash flow in the first quarter of 2017, which is still up to date. The impression is that cash flows have been negative since the beginning of the year, but the price has continued to grow. Historically, such deviations lead either to a sharp decline in the cost of the asset or to a sharp increase, but only when the inflows increase. Currently cash flows are negative, which raises the likelihood that the SPDR Gold ETF will not reach a new peak.

iShares Gold ETF - Here things are different, if we take into account the same period, the cash flow in the fund is entirely in positive territory, and from the beginning of 2018 there is a slight decrease.

Here's what the Dalio shares are trusting in the event of a market failure

Bridgewater increased its stake in Newmont Miniashhrer Corp to 148,185 shares and the Cleveland-Cliffs Inc. iron ore manufacturer. added another 3.33 million shares.

Source: Bloomberg Pro Terminal

Jr Trader Petar Milanov

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