‘Don’t sell just because there’s a bubble,’ says Ray Dalio, but be prepared for low returns over the next 10 years

Core Viewpoint - The current market is perceived to be in a bubble, but experts like Ray Dalio suggest that it is not yet time to panic or sell investments [1][2][3] Group 1: Market Analysis - Ray Dalio acknowledges vulnerabilities in the economy but believes that exiting the market is premature [1][2] - Dalio emphasizes that being in bubble territory correlates with low returns over the next decade, but this does not necessitate immediate selling [2] - Jamie Dimon compares the current AI market to the early internet days, suggesting that while there may be speculative elements, the overall industry could yield positive outcomes [2] Group 2: Bubble Dynamics - Dalio asserts that a bubble can burst but requires a stimulus to trigger it, indicating that current monetary policies are not conducive to a bubble burst [2][3] - The potential for a bubble pop is linked to individuals wanting to convert their wealth into cash, as the need for liquidity often drives market corrections [3] - Despite recognizing the bubble, Dalio believes that the conditions for a significant market correction are not present at this time [3]