Billionaire Ray Dalio stated that there is no doubt that a bubble exists in the market—the question is how long this bubble will last.
In a recent interview with CNBC, Dalio stated that some economic sectors have already issued early warning signals.
"We will not tighten monetary policy in the near future—on the contrary, we will loosen it. So you start to see these cracks. We see cracks in the market in many ways: private equity, venture capital, debt refinancing, and so on."
So, I believe that from almost all of these indicators, we are living in a bubble.
However, Dalio stated that the stock market is a bubble driven by artificial intelligence, but that does not mean it is about to burst.
“All bubbles occur during periods of dramatic technological change, with a large influx of capital. But things are never smooth sailing. Either too much is invested, or too little, failing to generate profits, and then there will be severe fluctuations…
[This bubble] is very similar to the bubble of 2000— but it is not as large as the bubble of 1929. However, we are currently in a bubble. So the question arises, when will the bubble burst?
Dalio stated that there are usually some signals to pay attention to after a bubble appears.
“When a bubble appears, you cannot just sell off because it is a bubble. You should look for signs of the bubble bursting, which is usually related to a tightening of the money supply, regardless of what causes it. You must understand that wealth is different from money.”
In a bubble economy, creating wealth is very easy. You know, for example, now you can raise $50 million, with a valuation of $1 billion. You are now a billionaire, and it is indeed worth $1 billion on paper— but that does not mean you can sell it.
Therefore, when there is a situation where wealth must be sold to raise funds— usually to pay off debts, but can you imagine what it would be like if a wealth tax were imposed?— then this situation will arise.”#加密市场反弹 $ETH
