<p>Dalio stated that the U.S. stock market is currently in a bubble, and the bubble will not burst solely due to high valuations. Historically, what truly triggers a crash is a liquidity crisis—when investors suddenly need funds to repay debts, pay taxes, or meet other liquidity needs, leading to forced large-scale asset sales. With the wealthiest 10% of the population in the U.S. holding nearly 90% of the stocks, the risk of such a liquidity shock is increasing</p>

- Ray Dalio warns that the U.S. stock market is currently in a bubble, exacerbated by extreme wealth concentration among the top 10% who hold nearly 90% of stocks.  
- He emphasizes that market crashes are typically triggered by liquidity crises rather than high valuations, as investors may be forced to sell assets to meet cash needs.  
- Dalio advises investors to understand risks and diversify, noting that while bubbles can persist, they often lead to significant wealth transfers and political upheaval when they burst.

Dalio interprets "When will the bubble burst": Stock market bubble + large wealth gap = huge danger