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Dalio Warns: AI Bubble Won't Burst Yet, It's Too Early to Exit

By: theblockbeats.news|2025/11/21 12:15:57
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BlockBeats News, November 21st. Billionaire investor and Bridgewater Associates founder Ray Dalio believes that even if you are concerned that the market frenzy is a bubble waiting to burst, you should not prematurely abandon the artificial intelligence (AI) field. In an interview with CNBC on Thursday, he said he is convinced that the current stock market is deep in a bubble, but this is still not a reason for investors to exit AI trades.

Dalio explained to the media that the reason investors should stay in the market is simple: the conditions for the current bubble to burst simply do not exist. "Don't sell just because of a bubble," said the legendary fund manager. "You have to time it. What will burst the bubble? It is usually a tightening of monetary policy, and we are not facing that situation now."

In Dalio's view, the bubble will only burst when there is a demand for asset liquidation in the market. He speculated that events such as Fed rate hikes or consumers facing a wealth tax could trigger sell-offs. In the foreseeable future, both of these scenarios appear unlikely in the market.

"I want to reiterate that the stock market could potentially rise significantly before the bubble bursts," Dalio added. (Jinse)

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