How Ray Dalio Would Invest If He Were Still Running Bridgewater

Ray Dalio, the founder of Bridgewater Associates, commented on how he would approach today’s market at a time when talk of an AI-driven bubble is intensifying. In an interview with CNBC, he said he would participate in the “AI game,” but would place greater emphasis on companies that use the technology rather than on hyperscalers such as Amazon, Microsoft, Google, and Meta.

According to Dalio, the biggest impact comes from the users of AI — those who implement the technology to cut costs and boost efficiency. These, he says, will be the true beneficiaries, and their stocks will remain at more reasonable valuations compared to the big tech giants.

He also noted that concentration in the AI market continues to raise concerns. The European Central Bank has already warned that strong growth concentrated in a small group of companies may cause the market to underestimate significant risks and uncertainties.

Dalio, who stepped away from Bridgewater’s leadership, emphasizes that diversification remains essential. He believes the world is entering a period of capital shortages, with large budget deficits and rising debt levels increasing concerns around fiat currencies. Because of this, he would reduce exposure to debt and increase positions in “alternative money” — including gold.

Gold has already been climbing this year, reaching record highs, supported by dollar weakness, limited supply, and growing uncertainty.

Dalio also says he would invest in companies involved in expanding power infrastructure — a sector that will be crucial for future technological development.

He outlines three conditions that, in his view, make a country successful: high-quality education and social stability, well-functioning capital markets, and a rule of law strong enough to prevent major conflicts.

Dalio adds that he would allocate capital to the “good markets” around the world — countries with lower debt and more resilient economic environments, such as India.