Overview
- Dalio cautioned that AI-led market winners could collide with reality in 2026.
- He likened current enthusiasm to about 80% of the euphoria before 1929 and the 2000 dot-com peak.
- He said the Federal Reserve’s 2026 stance, likely skewing dovish, is a major unknown that could keep inflating valuations.
- He argued a roughly 10% drop in the U.S. dollar last year can make investment returns look stronger than they are.
- He advised diversification, highlighting gold as 2025’s best-performing major market after beating the S&P 500 by 47%.