""Don't sell just because there's a bubble," Dalio said in an interview with CNBC aired yesterday. "But if you look at the correlations with the next 10 years' returns, when you are in that territory, you get very low returns.""
""You can't look at AI as a bubble, though some of these things may be in the bubble. In total, it'll probably pay off.""
""I think no company is going to be immune, including us.""
""I think that you have to say it's unsustainable," he added."
Stocks are showing bubble-like valuations and vulnerabilities exist in the economy. Selling solely because of a bubble is not advised, but historical correlations suggest low returns over the next decade when valuations reach such levels. Some sectors, especially AI-related stocks, exhibit frothy speculation but may produce durable, long-term payoffs despite overenthusiasm in parts of the market. A market burst is possible but likely requires significant stimulus to unfold. Major market leaders acknowledge both the extraordinary opportunity and the irrational elements in current AI-driven market exuberance.
Read at Fortune
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