Ray Dalio's latest views and portfolio adjustments have been revealed. Recently, the founder of the world's largest hedge fund, Bridgewater Associates, and billionaire Ray Dalio has been conveying a simple yet unsettling message to markets brimming with soaring asset prices: wealth is merely a number unless it can be converted into spendable cash. He stated that the current "wealth to money" ratio in the U.S. is approximately 850%. This level is comparable to peaks seen just before the 1929 financial crisis and the 2000 dot-com bubble burst.

Simultaneously, Bridgewater's latest disclosed U.S. stock holdings report shows a significant increase in technology and gold-related stocks in the fourth quarter of 2025, including positions in NVIDIA, Amazon, and Micron Technology, alongside an increased stake in the global major gold producer Newmont. The five stocks with the largest reductions in holdings included Uber, Fiserv, Google, Meta, and Microsoft.

Dalio recently wrote in an X post: "Wealth is worthless if it cannot be converted into money that can be spent. And when wealth is very large relative to the amount of available hard money—as we see today—bubbles are created."

Dalio attached a clip from a recent episode of the podcast "What Is Finance?" hosted by Indian entrepreneur Nikhil Kamath, where he explained the distinction between "wealth" (nominal asset value) and "money" (disposable purchasing power).

Dalio said if you sell stock valued at $50 million based on a $1 billion valuation, you are a paper billionaire, even though "no one is willing to pay a billion dollars for that stock combined." This gap between perceived wealth and cash is precisely how bubbles form. Drawing parallels to the 1920s boom in the U.S. and other episodes, Dalio noted that people feel richer as asset prices rise, but "if you don't sell the wealth, don't convert it into spending money, the wealth is worthless," a dynamic that has repeated throughout history.

Dalio stated that the current U.S. "wealth to money" ratio is about 8.5 to 1, meaning the ratio of financial assets to actual money is approximately 850%. This level is similar to peaks seen before the 1929 crisis and the 2000 dot-com bubble burst. He views this imbalance, coupled with widening wealth inequality and populist pressure for wealth taxes, as a key vulnerability that could force asset sales and "burst" the bubble.

The world's largest hedge fund, Bridgewater Associates, recently disclosed its latest 13F filing, detailing its U.S. equity holdings.

In the fourth quarter, Bridgewater increased its stakes in AI-focused stocks like NVIDIA, Amazon, and Micron Technology, as well as shares in Newmont, one of the world's largest gold producers. The total portfolio value reached $27.4 billion in Q4, a 7.4% increase from the previous quarter. The top ten holdings accounted for 36.33% of the total portfolio value, with positions in NVIDIA and Amazon seeing significant increases.

The top five stocks purchased by Bridgewater in Q4 were the SPDR S&P 500 ETF Trust (SPY), Micron Technology, Oracle, NVIDIA, and Newmont Corporation. However, within its top ten holdings, positions in Lam Research, Salesforce, Google, and Microsoft were reduced.

In his latest annual report and outlook, Dalio comprehensively examined the market dynamics and sources of returns for 2025. He believes the primary drivers of returns for the year were concentrated on two levels: first, changes in the value of currencies, including relative shifts between the U.S. dollar, other fiat currencies, and gold; second, the overall underperformance of U.S. stocks compared to non-U.S. equities and gold, with gold emerging as one of the best-performing major assets for the year.

He indicated that this outcome is closely linked to fiscal and monetary stimulus policies, changes in productivity, and a significant global asset allocation shift away from the U.S.

Looking ahead, Dalio pointed to two key uncertainties: the direction of Federal Reserve policy and the extent of productivity growth. If nominal and real interest rates remain suppressed, it will support asset prices but could also fuel bubbles.

Interest rate cuts and credit easing in 2025 boosted prices of long-duration assets like stocks and gold, yet their valuations are no longer cheap. Less liquid assets, such as venture capital, private equity, and real estate, remain under pressure, and as liquidity premiums compress, there is a risk of future repricing.

Dalio noted that U.S. policy in 2025 clearly leaned capitalist, using fiscal stimulus, deregulation, and industrial support measures to promote manufacturing and AI development. However, these policies also widened fiscal deficits and wealth inequality.

Externally, heightened U.S. sanctions and related actions raised market concerns about escalating conflicts, further driving gold demand and asset diversification. From a global perspective, the international order is gradually shifting from multilateral cooperation toward unilateralism, a change that increases conflict risks and military spending, deepens protectionism and deglobalization trends, and pressures overseas capital's willingness to allocate to dollar-denominated assets.