Polkadot News Update: Dalio: Federal Reserve's Support Sustains AI Market Surge, Withdrawal Remains Too Soon
- Ray Dalio warns AI-driven stock market nears bubble territory but advises against premature exits, citing Fed's accommodative policy as a key deflationary delay. - His proprietary bubble indicator at 80% capacity highlights AI speculation risks, yet rate cuts until 2025 could prolong the rally before any correction. - Nvidia's $57B Q3 revenue and S&P 500 record highs underscore AI's market dominance, while energy/software sectors show AI's expanding systemic impact. - Dalio urges investors to monitor Fed
Ray Dalio, the billionaire who established Bridgewater Associates, has cautioned that the current AI-fueled stock rally is approaching bubble levels, though he warned investors not to exit the market too soon. Speaking with CNBC, Dalio pointed out that while the market shows speculative excitement reminiscent of the dot-com bubble, the lack of major deflationary factors—such as interest rate hikes from the Federal Reserve—suggests the bubble may not burst in the near term
The explosive growth of the AI sector highlights Dalio's concerns. Firms such as
The Federal Reserve's position as a "lifeline" for the bubble is pivotal.
Beyond equities, the AI surge is transforming industries such as energy and enterprise software. For example,
For those investing, Dalio's guidance is straightforward: keep a close eye on Fed actions and avoid making hasty exits. While the AI market's underlying factors are still developing—with both genuine innovation and speculative excess—the lack of immediate deflationary pressures means the bubble's path is still unpredictable.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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