Bridgewater's Ray Dalio warns: The AI revolution is real, but high valuations and leverage may be creating a new bubble.

Ray Dalio, founder of Bridgewater Associates, stated that AI has revolutionary value capable of transforming production methods, but the current market has already shown some characteristics aligning with historical bubble patterns. Investors may overlook the gap between technological value and market prices. When asset valuations far exceed actual profitability and the funding environment tightens, bubble risks could quickly emerge. Dalio noted that bubble bursts are typically amplified through debt chains: falling asset prices reduce collateral values, forcing highly leveraged investors to sell assets to repay debts, which in turn drives prices down further. If inflation rebounds and prompts central banks to raise interest rates, higher financing costs could also exacerbate market repricing. He believes the global economy is in a long-term "big cycle" shaped by debt accumulation, widening wealth gaps, political division, and shifts in the international power structure. Investors should avoid concentrating wealth in a single asset and reduce risks via diversified allocations including stocks, cash, gold, bonds, and real estate. As a hard asset that is not easily created, gold can play a role in diversifying risks during periods of currency devaluation and rising financial stress. Regarding the job market, Dalio holds that AI will replace some repetitive intellectual tasks, and those who can collaborate with AI and continuously adapt to changes will gain an edge in the future. He emphasized that technological progress will not halt even if the economy enters a recession.