Ray Dalio Warns of Market Bubble but Advises Against Panic Selling
Bridgewater founder RAY Dalio cautioned investors about a market bubble during a CNBC interview, drawing parallels to historical extremes seen in 1929 and 2000. "There's definitely a bubble in markets," he stated, though emphasized that bubbles alone shouldn't trigger sell-offs. Current valuations, he noted, are 80% of the way to full bubble territory.
Dalio highlighted potential catalysts for a market correction, including tighter monetary policy, wealth taxes, or liquidity crunches—but sees no immediate trigger. His advice? Diversify into Gold and avoid reactionary trading. The comments follow renewed AI bubble fears after Nvidia's post-earnings volatility.