Alec Hogg: Dalio’s ‘bubble indicator’ says US not there

Ray Dalio, 71 (above) enjoys a well-earned reputation as one of the smartest investors in the planet. As a result the multi-billionaire founder of the world's largest hedge fund, Bridgewater Associates, has an army of devotees. They'll take comfort from yesterday's update of Dalio's 'bubble indicator' showing US stocks in general are not in the danger zone..Read also: Alec Hogg: Why business is like climbing stairs.A bubble, by Dalio's definition, is an asset trading at an unsustainably high price. After living through a number of these outliers since he started Bridgewater in 1975, and by studying from history, Dalio devised a 'bubble indicator' which asks six questions. As the summary below shows, lights are flashing for tech stocks. But it tells us the overall US market is OK..___STEADY_PAYWALL___.Read also: Alec Hogg: Yuval Harari – lessons from Covid-19.But Dalio does warn that some stocks are in 'extreme bubbles – particularly emerging technology companies'. Overall, however, just 5% of the US's top thousand companies are in this territory, around half of the number in 2000. However, it's yet another warning for those replicating the BizNews share portfolio which is heavy in "emerging tech". Naspers included..And for your listening and viewing pleasure….Latest audio on BizNews Radio… (click on the link to access).FB: WBHO turns a profit; Spur struggles; Hersov buys Cape airportBPH: Crypto currencies; Reg 28; Covid-19 and lockdown; EWCPANDA's Nick Hudson – unapologetic newsmaker, lockdown attacker'We'll build Lanseria Airport of Cape Town', says billionaire Rob HersovGerrie Fourie celebrates trailblazer Capitec Bank's 20th anniversary.Latest videos on BizNews TV….Comeback Kid Adrian Gardiner – from bankruptcy to luxury hotel mogulFB: Eskom R2bn 'ghost contract' scandal, Regulation 28

Alec Hogg: Dalio’s ‘bubble indicator’ says US not there

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