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___