Ray Dalio warns that the AI market bubble matches the severity of the 1929 and 2000 crashes.

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Ray Dalio has expressed concerns about a bubble in the AI market, drawing parallels to the 1929 crash and the 2000 dot-com bust. He endorsed Jeremy Grantham’s warning of a historic investment bubble, with asset prices potentially collapsing from $100 to $25. Rising interest rates and a surge in IPOs are fueling the speculation. SpaceX has completed a major IPO, while Anthropic and OpenAI are targeting $10 billion valuations. Goldman Sachs, Apollo, and BCA Research have also flagged a tech profit bubble. Dalio warned that a burst could intensify political tensions and global conflicts, as extreme readings on the fear and greed index drive irrational market behavior.

According to Fortune magazine, Ray Dalio, founder of Bridgewater Associates, stated that the current AI market bubble exhibits characteristics similar to those preceding the 1929 Great Depression and the 2000 dot-com crash. Dalio agrees with Jeremy Grantham’s assessment of the largest investment bubble in U.S. history and warned that asset prices could plummet from $100 to $25. Rising interest rates and a surge in stock offerings are triggering factors, with SpaceX having completed a large IPO and Anthropic and OpenAI racing toward a $10 billion valuation. Goldman Sachs, Apollo, and BCA Research have acknowledged the presence of a profit bubble in the technology sector. Dalio warned that the bursting of this bubble could ignite political polarization and geopolitical conflict.

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