Web Summit via flickr
Dalio suggests that stock prices are at elevated levels amid the threat of increasing interest rates, and this scenario might “burst the bubble.” “The present situation in the ongoing cycle resembles closely the situation we experienced in 1998-1999. In other terms, there exists a significant new technology that will undoubtedly transform the world and achieve success. However, some individuals mistakenly equate that with successful investments,” Dalio stated.
Dalio's caution arises amidst worries that the ongoing surge in artificial intelligence has exceeded acceptable limits, according to the FT. The valuations of tech companies surged significantly in the late 1990s, bolstered by low interest rates and increased internet usage. Nevertheless, when the US Federal Reserve enforced stricter monetary policy, there was a significant drop.
On January 27, stocks of AI-related tech firms plummeted following the achievements of Chinese startup DeepSeek, which created a competitive model. Nvidia, recognized as the primary beneficiary of the AI surge, experienced a loss of approximately $590 billion in market cap, marking the largest decline in history.
source: ft.com
Dalio's caution arises amidst worries that the ongoing surge in artificial intelligence has exceeded acceptable limits, according to the FT. The valuations of tech companies surged significantly in the late 1990s, bolstered by low interest rates and increased internet usage. Nevertheless, when the US Federal Reserve enforced stricter monetary policy, there was a significant drop.
On January 27, stocks of AI-related tech firms plummeted following the achievements of Chinese startup DeepSeek, which created a competitive model. Nvidia, recognized as the primary beneficiary of the AI surge, experienced a loss of approximately $590 billion in market cap, marking the largest decline in history.
source: ft.com