The artificial intelligence boom that powered Wall Street\u2019s technology \u200bstocks is \u201cnow in the early stages \u200dof a bubble,\u201d hedge fund manager Ray Dalio warned in a post on social media platform X on Monday.<\/p>\n
Wall Street\u2019s \u200dmain indexes \u200bposted double-digit gains in 2025, marking a third straight year of advances, a run last seen during 2019\u20132021. The gains were fueled by heavy investor demand for AI-linked stocks, which pushed U.S. equity benchmarks \u2060to record highs.<\/p>\n
Dalio, who co-founded hedge fund Bridgewater Associates in 1975, said U.S. stocks significantly underperformed non-U.S. equities and gold in 2025. Gold surged more than 60 per cent last year, while emerging markets posted a \u200cbanner year and Britain\u2019s blue-chip \u200dFTSE 100 outperformed major global markets.<\/p>\n
\u201cClearly, investors would \u200dhave much rather been in non-U.S. stocks \u200cthan in U.S. stocks, just as they \u2060would have preferred to be in non-U.S. bonds than in U.S. bonds \u200band U.S. cash,\u201d he wrote in the post.<\/p>\n
Global stocks seesawed in the fall as mounting concern over a potential AI stock bubble dragged on sentiment and raised the risk of a selloff.<\/p>\n
Meanwhile, geopolitical tensions \u200bin the Middle East and uncertainty over the U.S. Federal Reserve\u2019s interest rate path added to investor unease.<\/p>\n
\u201cOf course, there are big questions about Fed policy and productivity growth ahead,\u201d Dalio said.<\/p>\n
\u201cIt appears most likely that the newly appointed Fed chair and the FOMC (Federal \u2060Open Market Committee) will be biased to push nominal and \u2060real interest rates down, which would be supportive to prices and inflate bubbles.\u201d<\/p>\n
Analysts \u200csay global investors will actively seek opportunities this year in undervalued pockets of financial markets as growing concerns over an AI bubble push traders to look beyond highly valued technology stocks.<\/p>\n
Bridgewater Associates\u2019 main macro funds delivered a record-breaking \u200cperformance in 2025, Reuters reported in late December. <\/p>\n","protected":false},"excerpt":{"rendered":"The artificial intelligence boom that powered Wall Street\u2019s technology \u200bstocks is \u201cnow in the early stages \u200dof a…\n","protected":false},"author":2,"featured_media":390378,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[20],"tags":[62,901,276,277,888,902,879,877,903,49,48,876,895,896,891,878,875,46,549,295,894,887,914,880,881,893,889,890,884,904,885,909,910,912,907,911,905,908,882,898,899,714,897,906,865,61,900,892,886,883,913],"class_list":["post-390377","post","type-post","status-publish","format-standard","has-post-thumbnail","category-artificial-intelligence","tag-ai","tag-alberta","tag-artificial-intelligence","tag-artificialintelligence","tag-arts-news","tag-bc","tag-breaking-news","tag-breaking-news-video","tag-british-columbia","tag-ca","tag-canada","tag-canada-news","tag-canada-sports","tag-canada-sports-news","tag-canada-trafficcanada-weather","tag-canadian-breaking-news","tag-canadian-news","tag-economy","tag-education","tag-environment","tag-federal-government","tag-foreign-news","tag-globe-and-mail","tag-globe-and-mail-breaking-news","tag-globe-and-mail-canada-news","tag-government","tag-life-news","tag-lifestyle","tag-local-news","tag-manitoba","tag-national-news","tag-new-brunswick","tag-newfoundland-and-labrador","tag-northwest-territories","tag-nova-scotia","tag-nunavut","tag-ontario","tag-pei","tag-photos","tag-political-news","tag-political-opinion","tag-politics","tag-politics-news","tag-quebec","tag-sports-news","tag-technology","tag-travel","tag-trudeau","tag-us-news","tag-world-news","tag-yukon"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/posts\/390377","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/comments?post=390377"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/posts\/390377\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/media\/390378"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/media?parent=390377"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/categories?post=390377"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/tags?post=390377"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}