Ray Dalio Issues Warning on World's Largest Stocks Amid Rising Yields
In a recent interview on Yahoo Finance's Opening Bid podcast, legendary hedge fund founder Ray Dalio raised concerns about the valuations of the world's largest stocks.
Dalio cautioned that the "Magnificent Seven" stocks, including Amazon (AMZN), Nvidia (NVDA), and others, have become "so expensive." He emphasized the potential impact of rising 10-year yields on these high-momentum names.
"If you have an interest rate rise when it's relatively expensive, it's not likely to be good," Dalio said.
He advised investors to consider portfolio diversification and reduce excessive leverage in light of the growing debt burden facing the United States.
"The important thing if you're building a portfolio is to know how to have excellent diversification, to not be systematically leveraged long," Dalio said.
Dalio's warnings come amid broader market concerns about rising inflation, potential trade wars, and uncertainty in the regulatory environment. The Opening Bid podcast features insights from top business and market leaders, addressing critical issues impacting investors and the global economy.