Ray Dalio's Pure Alpha Fund Takes Bearish Stance Amid Market Pullback

Ray Dalio's Pure Alpha fund at Bridgewater Associates reportedly took a bearish stance on U.S. equities in late July, just as the S&P 500 index reached its recent high. The fund's analysis showed bearish positioning in 15 out of 28 assets, including U.S. stocks and Treasuries. Since then, the S&P 500 has dropped 3.8%, leading to retreats in investment vehicles like SPY, IVV, and VOO. Meanwhile, U.S. Treasury yields have climbed, with the 2-Year and 10-Year yields reaching highs not seen since October 2022.