Bridgewater founder Ray Dalio: The AI boom is currently in the early stages of a bubble, and the Federal Reserve will further inflate the bubble

Wallstreetcn
2026.01.05 17:10
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Ray Dalio stated that the current artificial intelligence (AI) craze has entered the early stages of a bubble. In 2025, the U.S. stock market is expected to significantly underperform compared to non-U.S. stock markets and gold assets. Compared to U.S. stocks, investors are more willing to allocate to non-U.S. stocks; they are also more inclined to hold non-U.S. bonds. The new Federal Reserve Chair and the Federal Open Market Committee are likely to lean towards lowering nominal and real interest rates. While this move will support asset prices, it will also further inflate the bubble