---
type: "Topics"
locale: "en"
url: "https://longbridge.com/en/topics/43137386.md"
description: "$S&P 500(.SPX.US)📈 "A textbook AI asset bubble"Dalio believes that the current market frenzy for AI is very similar to the electrification of 1929 and the internet bubble of 2000, specifically manifested as:· Typical bubble characteristics: Funds drive up valuations through leverage, creating a false prosperity of "paper wealth."· Fragility: Once interest rates rise or investors urgently need cash, the bubble may burst. At that time, selling assets to repay debts will lead to a sharp drop in prices and an economic recession.🌍 The decline of the "Great Cycle" once every 80 yearsDalio points out that the "Great Cycle" since the end of World War II in 1945 is entering a stage of decline, mainly facing three major challenges:· Debt crisis: Huge government deficits and depleted funds.· Internal polarization: Widening wealth gap and intensified social contradictions.· External conflict: Disintegration of the international order and intensifying geopolitical conflicts.💎 Asset allocation adviceIn terms of coping strategies, Dalio has given clear advice:· Cash is the worst, prefer gold: He believes that cash is the worst in the long run, and prefers gold bars over Bitcoin among safe-haven assets.· Beware of the social divide: AI's replacement of labor will further tear apart the distribution of social wealth."
datetime: "2026-08-01T07:24:53.000Z"
locales:
  - [en](https://longbridge.com/en/topics/43137386.md)
  - [zh-CN](https://longbridge.com/zh-CN/topics/43137386.md)
  - [zh-HK](https://longbridge.com/zh-HK/topics/43137386.md)
author: "[红树街交易员李华](https://longbridge.com/en/profiles/14753423.md)"
---

# $S&P 500(.SPX.US)📈 "A textbook AI asset b…


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