Billionaire Dalio sends 2-word warning as stocks sell-off
thestreet.com • • business
Key Points:
- After a sharp 19% drop in the S&P 500 due to tariffs, stocks rallied strongly with the Nasdaq and S&P 500 gaining 50% and 36%, respectively, since April, but valuations now appear overly optimistic amid escalating trade wars.
- Ray Dalio, founder of Bridgewater Associates, warns of "capital wars" driven by rising U.S. debt and global monetary shifts, with central banks reducing exposure to U.S. debt and increasing gold holdings as a safer reserve asset.
- Gold outperformed stocks in 2025 with a 66.2% return and continues to gain in 2026, fueled by geopolitical tensions and new tariffs, prompting Dalio and other experts to recommend a 5-
