Investors are missing three big chances, says the Dalio fund. What are the three to watch out for?

Hedge fund Bridgewater Associates, founded by billionaire Ray Dalio, has found three investment ideas outside the US that it believes will help strengthen investment portfolios. They, according to the fund's co-manager of investments, not only have their own growth potential, but also provide protection against a possible decline in the U.S. market.

Hedge fund Bridgewater Associate sees significant potential in foreign companies, gold and bonds - assets that investors have "barely begun to tap." This was written by CNBC with reference to Bridgewater's investment co-director Karen Carniol-Tambur.

"In addition to their own attractiveness, these assets provide valuable downside protection - and that's an opportunity in itself," Carniol-Tambur noted in the wire service's narrative.

Most companies in the S&P 500 index outside the so-called "Magnificent Seven" are trading more expensive than their foreign counterparts, although their earnings growth rates are comparable, Karniol-Tambur said. According to Bridgewater data, the share of U.S. stocks in household portfolios has risen from about 50% after the 2008 global crisis to about 80% today.

"[At the same time] foreign companies are actually on sale - you can buy a comparable profit stream cheaper," she said.

Among specific areas Bridgewater singles out Germany: there, as the fund expects, budget stimulus measures will support the development of defense and infrastructure companies. Japan and South Korea are also in focus, where the ongoing corporate governance reforms create new opportunities for business growth and investment attraction.

Investing overseas will help investors better weather a possible correction in the U.S. stock market, notes Carniol-Tambur.

Bridgewater also sees potential in bonds, which are once again providing attractive yields after a period of zero rates.

"Yes, high government debt and deficits are a risk, but it can be mitigated by holding bonds of different economies," Karniol-Tambur explained.

Against a backdrop of inflation risks, rising government debt and geopolitical tensions, investors are increasingly willing to accept gold's "zero return" as a price for protection against "significant losses" in other assets.

"Gold price movements reflect a world in which central banks and large investors are seeking to hedge monetary risk," Karniol-Tambur added.

UBS forecasts that central banks this year will maintain a high level of gold purchases - 900-950 tons. Gold prices at the auction on October 6 reached a new record on the background of a sharp weakening of the Japanese yen and continued expectations of lower interest rates in the United States. The growth of quotations was also supported by concerns over the ongoing suspension of the U.S. government - Congress has not moved forward in adopting the budget, Investing.com writes .

The spot price of gold was up 1.4 percent to a record $3949.6 an ounce on Oct. 6, Bloomberg shows.

This article was AI-translated and verified by a human editor