Dalio warns: The AI bubble will not burst temporarily, it is still too early to exit now.

BlockBeats news, on November 21, billionaire investor and founder of Bridgewater Associates, Ray Dalio, believes that even if you are concerned that the market boom is a bubble waiting to burst, you should not prematurely abandon the artificial intelligence (AI) sector. In an interview with CNBC on Thursday, he stated that he is convinced that the current stock market is deeply entrenched in a bubble - but that is still not a reason for investors to exit AI trading. Dalio explained to the media that the reason investors should stay in the market is simple: the conditions for a bubble to burst do not currently exist. “Don't sell just because of a bubble,” the legendary fund manager said, “you have to seize the opportunity. What will puncture the bubble? It is usually a tightening of monetary policy, and we are not facing that situation right now.” In Dalio's view, a bubble will only ultimately burst when there is a demand for asset liquidation in the market. He speculated that events such as the Fed raising interest rates or consumers facing a wealth tax could trigger selling. In the foreseeable future, both of these situations seem unlikely to occur in the market. “I want to reiterate that the stock market could rise significantly before the bubble bursts,” Dalio added. (Jin10)