Bridgewater: The "Golden Age" of the corporations is nearing its end

The main drivers for corporate growth for US firms are already unstable and under threat, which may eventually lead to a fall in stock prices. This concern is shared by Bridgewater Associates, the largest hedge fund in the world.

"Over the past two decades, US corporate earnings have risen steadily, which has contributed to incredible returns on stocks," Bridgewater said, managing the fund for more than $ 160 billion. Without this steady expansion of earnings, shares may fall by 40%, the fund said.

"Work capacity has declined, corporate taxes have fallen, tariffs have fallen, globalization has increased, technologies allow for larger scale operations and cost savings." Anti-trust laws are less, and interest rates have also fallen. factors have contributed to one of the most stimulating business environments, many of which are now under threat, "the fund said.

At the same time, the sentiment imposed by the populists is beginning to deteriorate for those forces that drive corporate profits, as well as the overall negative mood of the people to those companies that have been favored the most.

Additional discussions are taking place to encourage more mega-corporations to tax their taxes, who have benefited from the current policies of the government.

Source: CNBC

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