Bridgewater's Ray Dalio warns AI stock surge echoes historic bubbles
Ray Dalio, founder of Bridgewater Associates, is sounding the alarm about the current AI-driven stock market surge.
On The Diary of a CEO podcast, he compared today's excitement to past bubbles like the 1929 crash and dot-com bust, pointing out that sky-high prices, rising interest rates, and more companies selling shares could spell trouble.
Jeremy Grantham and Goldman Sachs cautious
Dalio isn't alone. Investor Jeremy Grantham also called this "the biggest investment bubble in American history."
Both worry that AI hype is pushing company values way beyond reality.
A lot of AI-focused firms are raising big money and going public; for example, SpaceX had a record IPO in June but has since lost over $500 billion in value and is now trading at less than half its peak.
Even Goldman Sachs says tech stocks might be getting ahead of themselves.