Ray Dalio Confirms the Market Is in a Bubble… But He Says It’s Not Time to Sell Nvidia Stock Yet

Core Viewpoint - AI stocks are experiencing a challenging period, with some stocks declining significantly while others are stabilizing, leading to concerns about a bubble in the sector [1] Group 1: Market Sentiment - Ray Dalio, founder of Bridgewater Associates, believes the market is in bubble territory, estimating that current euphoria is at "80%" of levels seen in 1929 and 2000 [2] - Dalio suggests that the bubble "needs to be pricked," indicating that the market may continue to rise unless a negative catalyst emerges [2] Group 2: Investment Strategy - Dalio advises against panic selling due to the bubble, suggesting that investors should consider rearranging their holdings instead [6] - Bridgewater Associates has significantly reduced its holdings in AI semiconductor stocks, selling 65.38% of Nvidia shares, trimming Broadcom by 26.68%, and cutting Alphabet and Meta Platforms stakes by over 52% and 48% respectively [3][4] - Conversely, Dalio increased his stake in the iShares Core S&P 500 ETF by 75.31% to $2.71 billion, making it his largest holding, while also boosting investments in Salesforce and Lam Research [4][5] Group 3: Future Outlook - Despite the current market conditions, there are still stocks trading at a discount with potential for upside, and stocks like Nvidia may continue to perform well until the bubble is addressed [6]