Bridgewater founder and billionaire Ray Dalio believes the stock market is displaying signs of euphoria as AI-driven momentum has boosted stocks and investor sentiment.
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“This is something that feels frothy to me,” Dalio said at the Greenwich Economic Forum on Tuesday. He added that the current market environment shows signs of being a bubble and is comparable to the Dot-Com period in the late 1990s. At the same time, Dalio said he “wouldn’t want to be short the super-scalers.”
Dalio Favors Gold Over the U.S. Dollar
Despite gold futures reaching a record high of $4,014.60 per troy ounce on Tuesday, Dalio still believes that the precious metal is a better safe haven asset than the U.S. dollar.
“Gold is a very excellent diversifier of the portfolio,” Dalio said. “So if you were to look at just from the strategic asset allocation mix perspective, you would probably have as the optimal mix something like 15% of your portfolio in gold.”
In addition, Dalio says that gold can act as protection against rising government debt, geopolitical tensions, and reduced confidence in currency.
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