Bridgewater's co-chief investor says the US is at the center of a global financial bubble - and warns a crushing recession is on the cards

US asset prices won't rebound to pre-pandemic highs, and investors face the prospect of a massive market crash and a severe recession, according to Greg Jensen.

The co-chief investor of a hedge fund said that the biggest mistake was the belief that they would return to the pre-COVID prices.

The hedge fund boss warned that investors were overestimating the Fed's ability to curb inflation, meaning current market prices understate the risk of a deep, broad, and lengthy recession.

The US is at the center of a global financial bubble, and therefore it's the country most at risk when it inevitably burst.

The boss of the company estimated in August that asset prices were up to 30% higher than they should be. He thought they would fall by 25%.

In May, Ray Dalio, one of the co-chief investors at Bridgewater, issued a gloomy outlook for the stock market. The billionaire investor predicted that the Fed wouldn't be able to raise interest rates high enough to offset inflation.

In May, Bob Prince, the hedge fund's third and final co-chief investor, said that the US economy was on the verge of deflation and that investors were too confident in inflation.

Bank of America says to buy these 5 real estate stocks that will resist inflation and beat earnings forecasts, even as the economy teeters on the edge of a hard landing or recession.