Dalio: The global economy will be "on the brink" in the next two years; don’t rush to exit just because AI valuations are too high.
Written by: Bao Yilong
Source: Wallstreetcn
Bridgewater founder Ray Dalio has warned that the global economy will face dangerous conditions in the next one to two years, but he advises investors not to rush out of AI investments just because of high valuations, and instead to focus on substantive signals of a bubble bursting.
In an interview with CNBC on Monday, Dalio said that the current market has shown cracks in multiple areas—including private equity, venture capital, and the refinancing debt sector—due to the overlapping impact of three cycles: debt, political conflict, and geopolitics.
Dalio pointed out that the global debt burden has started to put pressure on parts of the market, and that governments are caught in fiscal distress, unable to raise taxes or cut benefits. This structural conflict is intensifying domestic political polarization, and the rise of both left-wing and right-wing populism means irreconcilable differences.
With the 2026 US midterm elections approaching, Dalio expects political conflict to further intensify