Ray Dalio says we are definitely in a bubble, but that doesn’t mean you should sell yet

Nvidia’s rally lifted the stock market, with Wall Street appearing to move past fears around the AI trade faltering that weighed on stocks in recent sessions.

The technology-heavy Nasdaq Composite has climbed nearly 17% in 2025, propelled by gains in megacap tech stocks amid continued excitement around AI.

While Dalio sees a bubble forming, he said there would also need to be something to pop it. The billionaire investor said it’s unlikely to be tighter monetary policy, but it could come from higher wealth taxes.

“The picture is pretty clear, in that we are in that territory of a bubble,” Dalio said. “But we don’t have the pricking of the bubble yet.”

Dalio said market participants should look to diversify their portfolios through investments like gold. The metal — which has long been viewed as a safe-haven trade — has surged to all-time highs this year.