Bridgewater's Ray Dalio warns of AI 'classic bubble' in Singapore
Business
Ray Dalio, the founder of Bridgewater Associates, thinks the AI market is heading for a "classic bubble" that could pop soon.
At a CEO conference in Singapore, he pointed out that tech companies are borrowing big to fund their AI dreams, but with interest rates rising fast, those debts are getting harder to handle.
Dalio suggests cash amid concentrated gains
Dalio explained that market gains are concentrating in a handful of stocks, but bond yields (basically how much it costs to borrow money) are at their highest in decades.
He suggested people should think about turning some of their wealth into cash as stock prices keep climbing.
He also mentioned extra pressure from wealth taxes and needing to actually sell assets to get money, adding, "the bubble usually pricks at that."