Ray Dalio states that financial markets are “definitely” in a bubble

Source: CritpoTendencia Original Title: Ray Dalio says financial markets are “definitely” in a bubble Original Link: https://criptotendencia.com/2025/11/20/ray-dalio-afirma-que-los-mercados-financieros-estan-definitivamente-en-una-burbuja-2/ According to experienced investor and Bridgewater founder Ray Dalio, financial markets are “definitely” in a bubble, driven mainly by the technology sector. In particular, companies linked to artificial intelligence (AI) are seeing valuations far above their real value, a concern that has been growing among analysts and investors for weeks.

Even so, Dalio maintains that although the bubble will burst and cause significant losses, that moment hasn’t arrived yet. He emphasized that it’s not advisable to sell just because there is a bubble, as the sector can still offer additional returns. “Don’t sell just because it’s a bubble,” he stressed.

The investor’s statements come amid Nvidia’s quarterly results, which far exceeded expectations. The company’s shares surged, but then dropped sharply. At the time of writing, NVDA reports a decline of -2.1%, standing at $182 per share.

The company posted a 65% increase in revenue, reaching $31.9 billion during its third fiscal quarter. Far from easing concerns, this growth reinforces fears of a possible overvaluation in the AI sector. That’s why major stock indices are operating in the red during Thursday’s session.

Losses spread across financial markets

While Dalio openly talks about a bubble, capital seems to have taken notice. Outflows from risk assets continue to rise, also impacting the cryptocurrency market. The price of BTC, for example, is under heavy selling pressure, pushing it once again below $87,000.

Dalio argues that while the bubble is evident, it won’t burst easily. For that to happen, a clear trigger would be needed—something he says is not present in the current landscape.

This means that the sell-offs seen in the S&P 500, the Nasdaq, and the crypto market are mainly responses to fear and uncertainty rather than solid fundamentals. Under this interpretation, capital could return once investors perceive there is no imminent risk of collapse.

“The outlook is pretty clear: we’re in the comfort zone of a bubble,” Dalio stated. He added, “we haven’t seen the first pop yet.” His recommendation for investors is to apply diversification strategies to cushion possible impacts.

Among the assets he highlights as diversifiers is gold, traditionally a safe haven. Even so, he insists that financial markets can remain relatively stable in the short term.