The Impending European Market Crash

Sponsored by Cometeer

Legendary hedge fund manager Ray Dalio recently unveiled a $10 billion short bet against European stocks. Europe faces an unprecedented energy crisis thanks to declining natural gas imports from Russia. This threatens to plunge the content into a severe recession.

0:00 - 1:49 Intro
1:50 - 2:58 Cometeer sponsored content
2:59 - 5:08 Weoponization of gas
5:09 - 6:48 Winter is coming
6:49 - 7:37 Financial crisis
7:38 Ray Dalio's short position

#Wallstreetmillennial #Cometeer #EU #recession #raydalio

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[nickwolfe]

I'm no longer impressed by what the "biggest hedge fund in the world is" it seems to change every few months since they rely on giant sketchy bets disguised as "investments"

[alexsurette]

The biggest thing you missed in this video. WHY is Europe so dependant on another country for their energy? This is not Putin’s fault, this is the result of poorly thought out green policies.

[hvwbgkp]

I'm german. I've literally never seen temperatures hit -30°C in this country.

In the lowlands regular winters tend to hover between -5 and 0°C while higher altitudes are of cause a bit colder but there are few areas above even just 4000ft.

There are also a lot of ways to drastically reduce natural gas consumption: Reduce heating for offices and public buildings to a minimum. Send people into homeoffice. Halt production in energy intensive industries. Restrict heating of non-residential, non-essential buildings to a minimum. Subsidize quickly available alternative heating sources like firewood, wood pelets, biogas, etc.

It will be hard, but nowhere near a humanitarian crisis. In this case hard might mean temporarily falling to the living standards of some of our European neighbors, if even that.

[Semtx]

@1:19
i live in europe. i follow the news and i know none factories that are closing or laying off people because they run out of gas. This is pure sensationalism

[goshoamd]

It’s naive to accuse Russia only for the supply cut. More than a decade EU officials were warning that Russia could use the gas as weapon. What were they expecting when they weaponized the swift? Why weren’t they prepared?

[jensklausen]

It is apparently only a relative small bet for Bridgewater Associates. I will not put too much into it. He is also speculating against the long term trend and the market has already priced some if not all of the recession in, as mentioned. He also have long investments in European stocks.

[toifel]

My first reaction to "-20° aren't uncommon in Germany" was calling it bullshit.. then I realized you mean Fahrenheit. Sounds about right, but I prefer -20° over the +100° we had the last days. Greetings from Germany.

[nikhilchandra]

Lesson: not to pick fight with neighbourhood grocery store else you will left with no bread.

[Stfn]

So many inaccuracies in this video :( and it is also made to sound much more dramatic than it is in reality.
It is very hard to see -30 degrees Celsius in Germany, unless you go high into the mountains.
In winter industrial demand is only 20% because the total demand goes up, so in absolute terms industrial demand is not smaller ;)
And these are just 2 of them.

[shadowninja]

It's naive to say that Russia's economy isn't being harmed by the sanctions just because it's not being harmed a ton in the short term. A look at countries that have been sanctioned for decades shows that Russia is royally screwed in the long term, even if they do "ok" in the first one or two years. Also keep in mind, part of why Russia's economy is holding up as well as it is is because foreigners can't get their money out of Russian stocks, and foreigners own at least 40% of the stocks.

[joncampbell]

I disagree with the statement that Putin is the one man to blame. We’re all complicit in this, we let the green movement make Europe dependent on Russia for oil and natural gas, here in Canada we could have supplied NG if our climate initiatives hadn’t prevented pipelines and new energy projects.

[colmcoakley]

And yes individual EU countries can ask the ECB for funding. Usually through the form of low interest / interest free loans to cope with domestic issues. Several EU countries were bailed out back in 2007 during the financial crisis. This is where most of modern day EU debt comes from. Money is printed, issued in the form of bonds to EU countries.

[alainbelanger]

-30C in Germany isn't common, in general winters are much milder, usually around 0C. Over the next few months other exporters of natural gas, such as Norway and North African countries, will increase production. This should mitigate, at least to some extent, the loss of Russian gas.

[NINE]

Ray is a hack who makes money collecting fees. Why do people care about his "picks"? It's all smoke and mirrors while he collects his 2% to get rich. If he was that good, he would be a billionaire trading his own account. A short in this market is hardly genius.

[dbr]

Russian MOEX went from 4300 to around 2000 right now! They're in a depression! On top of that it has strong bearish sentiment still! Russian economy is not OK! They're currency is being artificially propped up right now, once others pick up oil production, Russia is out of tricks.

[profderek]

Ray Dalio is an old guy in the game. I mean he claims he's up 32% so far this year, so I hope he knows what the heck he's doing. Personally gonna stick with diversification using the copytrading system. Finished second quarter at +21%. Just an average Joe here trying to thrive in these volatile markets.

[benjaminh.]

There are a few errors in this video. -30C is very uncommon, 5C up to -10C is more common. And you missed another Important Point. Gas Storages around Europe. Your conclusion is still Right. There is a high uncertainty and the next to Winters will probably be Rough and expensive.

[jennifernuckolls]

Thank Bidumb ..he’s played a major part

[chrisdubs]

It's funny being from Canada and hearing about extreme coal and Europe Gas prices are so high here I literally don't turn on the heat until it gets to negative 10 And even then I set it at 14 And wear a jacket

[ataherizade]

" A good hedge fund never lets a crisis go to waste." :)