Dalio Urges Cautious Approach to AI Market Despite Valuation Concerns

Bridgewater Associates founder Ray Dalio has cautioned against hasty exits from the artificial intelligence (AI) market, even though concerns about overvaluation are growing. He suggests investors avoid prematurely withdrawing their investments due to the lack of triggers like tightening monetary policy that could trigger a bubble burst. Dalio believes bubbles typically subside when asset liquidation becomes necessary – a situation not currently present in the AI sector. He acknowledges the potential for substantial growth within the market before any significant downturn occurs.