Ray Dalio warns of market risks and discusses wealth

Ray Dalio, founder of Bridgewater Associates, has issued warnings regarding potential risks in the stock market. He noted that rising bond yields and negative expectations for corporate cash flows are weakening the factors that have previously supported equities. While stock prices have risen and corporate earnings growth has limited the impact of rising interest rates so far, Dalio suggests the market is entering a more sensitive and risky phase as the advantage of stocks over bonds diminishes.

Dalio emphasized that investors should look beyond simple profitability and closely monitor free cash flow to ensure companies can meet investment needs without liquidity issues.

Speaking at the Milken Institute Asia Summit in Singapore, Dalio also shared perspectives on the relationship between wealth and happiness. He stated that while money is an important element of life, there is no correlation between wealth and happiness beyond a certain level. According to Dalio, the greatest determinant of happiness is a sense of belonging to a community and maintaining meaningful relationships.