Markets Could Fall 20%-25%, Bridgewater's Jensen Warns

The video discusses the Federal Reserve's ongoing dilemma of raising interest rates despite a slowing economy. It highlights the market's expectations of inflation falling and the Fed's quantitative tightening measures. The discussion covers the impact of these policies on asset prices, the real economy, and the financial economy. The video also touches on trends like deglobalization and the need for market adjustments, emphasizing the potential for a significant decline in asset markets.

In what ways might the tightening of liquidity affect the economy and asset prices?

What does the text suggest about the relationship between cash flows and asset prices over time?