The world’s largest hedge fund Bridgewater Associates, led by billionaire Ray Dalio, has a warning for investors related to an economic slowdown in the United States. 

What Happened: The U.S. market is yet to price in an economic slowdown in the U.S., Reuters reported on Thursday, citing Bridgewater’s co-chief investment officer Karen Karniol-Tambour.

“Profits are extremely high and it seems very unlikely they can remain this high at unprecedented levels forever,” Karniol-Tambour reportedly said at an investor conference.

The market is not really reflecting a significant economic slowdown.”

Karniol-Tambour said investors have majorly considered a rise in interest rates while ignoring a very significant economic slowdown and higher volatility brought by persistent inflation.

See Also: Elon Musk Says US Is Already In A Recession, Could Last Up To 18 Months Before ‘Boom Time Again’

Why It Matters: Bridgewater Associates’s sentiments were echoed by Stanley Druckenmiller of Duquesne Family Office and Greenlight Capital’David Einhorn, who made an appearance at the same conference.

Druckenmiller said he believes a recession is likely to strike next year and that he is looking for opportunities to short stocks and the dollar.

Einhorn said the big problem of inflation is likely to persist, partly because of under-investment in things such as cement, housing, mining oil, and paper.

Tesla Inc TSLA CEO Elon Musk had last month said the U.S. is probably in a recession that could last over a year, adding that they are not necessarily bad things.

Price Action: The S&P 500, the key index that tracks the stock performance of 500 large companies, is down 16.2% year-to-date.

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