ChainThink reports that on August 4, according to Fortune magazine, Ray Dalio, founder of Bridgewater Associates, stated on the show "CEO Diary" that the current market bubble, driven by the AI hype, exhibits "classic characteristics" similar to those seen before the 1929 Great Depression and the 2000 dot-com bubble.
Dalio agreed with GMO co-founder Jeremy Grantham’s earlier assessment that “this is the largest investment bubble in U.S. history.”
He believes the core risk lies in the confusion between wealth and money: the paper wealth held by investors cannot be directly consumed, and if the market reverses and a concentrated sell-off occurs, asset prices could drop from $100 to $25, while the level of debt remains unchanged.
Dalio also noted that rising interest rates and a surge in stock offerings could serve as triggers for bursting the bubble. The report also stated that institutions such as Goldman Sachs, Apollo, and BCA Research have begun to acknowledge the risk of a "profit bubble" in the technology sector.
Under Dalio’s “Big Cycle” framework, the bursting of a bubble may be more than just a financial event—it could also intensify political polarization and the risk of geopolitical conflict.