According to BlockBeats, billionaire hedge fund manager and Bridgewater Associates founder Ray Dalio has issued a warning about a potential bubble in the U.S. stock market driven by investor enthusiasm for artificial intelligence. Dalio compared the current situation to the dot-com bubble that burst at the turn of the century.
Dalio highlighted that the current pricing levels in the U.S. stock market are extremely high and coupled with interest rate risks, this combination could potentially burst the bubble. He noted that the current phase of the market cycle is very similar to the conditions in 1998 or 1999. In his view, while there is no doubt that new major technologies will change the world and achieve success, some investors may be confusing this technological success with investment success.
