Bridgewater Associates has recognized three key bets beyond U.S. shares which it says can present a layer of resilience to portfolios as investors’ equities exposures hit all-time highs. The hedge fund big which manages about $90 billion in property, sees a wealth of alternatives throughout international firms, gold and bonds that investors have “hardly begun to tap,” in keeping with Karen Karniol-Tambour, Bridgewater’s co-chief funding officer. “Besides being attractive on their own, these assets offer valuable downside protection, which is itself another kind of opportunity,” she famous within the agency’s newest “Connecting the Dots” market commentary. Karnoil-Tambour stated many of the firms within the S & P 500 beyond the Magnificent Seven are buying and selling at a premium to non-U.S. shares, regardless of international firms exhibiting related earnings development. “Companies abroad are effectively on sale — you can buy a comparable stream of earnings for less.” Specific performs embrace Germany, the place fiscal easing is anticipated to spice up protection and infrastructure shares, and Japan and South Korea, amid the drive to enhance company governance. .STOXX YTD mountain Stoxx 600 By pouring more cash into international shares, investors can higher face up to a possible equities reversal, she stated. Households’ publicity to U.S. shares has swelled from roughly 50% of their investments following the Global Financial Crisis to about 80% immediately, in keeping with the evaluation. ‘Hedging financial danger’ Bonds, in the meantime, supply higher yields for investors trying to curb draw back danger, in keeping with Bridgewater, because the near-zero rate of interest atmosphere that prevailed within the years following the disaster has “fundamentally shifted.” “While high government debts and deficits are certainly a risk worth noting, the risk can be mitigated by holding bonds across different economies,” Karniol-Tambour stated. Gold costs have surged this yr, hitting $3,900 per ounce on Oct. 2, in keeping with a UBS notice Friday — and Bridgewater thinks it might go additional. XAU= YTD mountain Spot gold Concerns round inflation, rising public debt, and geopolitical tensions imply allocators are extra keen to abdomen the “zero-yield opportunity” within the treasured steel with a view to offset the chance of “significant” losses right here. UBS stated central financial institution purchases of gold will stay stable this yr, at between 900 and 950 metric tons this yr. “Gold price action reflects a world where central banks and other investors are increasingly seeking to hedge monetary risk,” stated Karniol-Tambour. Bridgewater – which was based in 1975 by Ray Dalio – noticed its flagship macro technique, Pure Alpha II, notch a 26.2% return from the start of the yr till Sept. 29, in keeping with Reuters . Goldman Sachs CEO David Solomon warned on Friday that inventory markets might face a “drawdown” within the subsequent yr or two following the AI-driven bull run. “There are going to be winners and losers,” he stated at Italian Tech Week in Turin, Italy. Georges Debbas, head of EU fairness derivatives at BNP Paribas , stated macro-focused investors might be set to broaden out their concentrated bets from U.S. worth names in the direction of different areas. “Their interest in Europe is picking up, not massively, but we expect things to change once we see a bit more earnings momentum coming,” Debbas instructed CNBC’s “Squawk Box Europe” Thursday. “[European banks] remain one of the mega winners,” Debbas stated. “As a solid compounder it remains one of our favorite long cyclicals.”