This week, we speak with Rebecca Patterson, who serves as director of investment research at the world’s largest hedge fund, Bridgewater Associates. In addition to shaping the firm’s research agenda, Patterson is a member of the executive committee, investment committee, and commercial and business strategy committee, and helps lead the firm’s diversity and inclusion efforts. She previously served as chief investment officer at Bessemer Trust, where she oversaw $85 billion in client assets; she is currently a member of the Council on Foreign Relations.

We discuss her unusual career path, which took her from a career in journalism at Dow Jones to JPMorgan to Bridgewater. She explains how she developed an interest in currencies and commodities before diving deeply into equities.

Patterson describes how the one-two punch of monetary and fiscal stimulus led to a “Demand Shock” that has overwhelmed goods production. Even though global manufacturers ramped up production to 5% above pre-pandemic levels, demand for goods has risen 20%. This has made the supply chain issues even worse and explains a large part of the global inflation spike we are currently experiencing.