The investor said expected returns over the next 5-10 years could be negative after inflation and warned equity markets are heavily concentrated in a small group of AI-linked names.
Ray Dalio said U.S. stocks could generate real returns of -5% to -10% over the next 5-10 years, signaling that investors may lose purchasing power even if nominal gains remain positive. He also warned that the market is dangerously concentrated in a handful of AI names, a setup that can amplify downside risk when leadership narrows and valuations depend on a small group of companies.