A rally in Nvidia’s stock has propelled the broader market higher, allaying recent fears of a faltering artificial intelligence trade. The tech-heavy Nasdaq Composite has climbed nearly 17% year-to-date, fueled by gains in megacap technology stocks and sustained excitement around AI.
Despite the market’s strength, billionaire investor Ray Dalio warns that a bubble is forming, though he noted that a specific catalyst would be needed to burst it. Dalio suggested this trigger is unlikely to be tighter monetary policy, speculating instead that it could come from higher wealth taxes.
“The picture is pretty clear, in that we are in that territory of a bubble,” Dalio said. “But we don’t have the pricking of the bubble yet.”
To navigate this environment, Dalio advised investors to diversify their portfolios with assets such as gold. The precious metal, long considered a safe-haven investment, has surged to all-time highs this year.
Source link
