Ray Dalio has issued a stark warning that the Federal Reserve’s decision to halt quantitative tightening marks the beginning of a dangerous cycle of “stimulating into a bubble” rather than responding to economic weakness. The billionaire investor and Bridgewater Associates founder argues that the Fed’s shift from balance sheet reduction to expansion represents a classic late-stage debt cycle dynamic that could drive gold and Bitcoin dramatically higher before an inevitable collapse. The Fed announced tha ...

Group 1 - The price of gold reached a record high of $3,757.60 per ounce, indicating investor fear and a search for safe havens, while the S&P 500 also hit a new all-time high at 6,664.36, reflecting optimism in the stock market [1][2] - Deutsche Bank's analysis suggests that investors are simultaneously bullish on equities and fearful of significant downside risks, highlighting a complex market sentiment [3] - Historical context shows that high gold prices often correlate with economic uncertainty, as seen in September when gold prices surpassed their inflation-adjusted peak from January 1980, a period marked by recession fears [4] Group 2 - Current investor fears include persistent U.S. inflation above target, potential government shutdowns, and concerns over a slowdown in payrolls, which have led to expectations of rapid interest rate cuts [5] - There is speculation about AI stocks being in a bubble, reminiscent of the dot-com boom, which previously caused a decline in gold prices due to over-optimism in tech stocks [6]