Ray Dalio cries wolf while the fund he founded loads up its portfolio with artificial intelligence?
The financial world is used to hearing Ray Dalio, the legendary founder of Bridgewater, predict doomsday prophecies about the end of the world order and the collapse of the economy.
But while he scares everyone in interviews, the recent purchases of the fund he established reveal a completely different story?
Dalio is not exactly running for shelter, he is not shorting and not buying puts, he is simply buying chip and software stocks.
The drama in numbers: the fund is betting on the future
While the market tries to understand if it's a bubble or a revolution, Dalio's fund (Bridgewater) decided it's not waiting for an answer, it's buying it.
Here's a look at what happened in their investment portfolio last quarter:
Nvidia $NVDA: The fund increased its holding by 54%.
Is this a clear statement of intent regarding who controls the hardware of artificial intelligence?
While the market may fear the valuation, Bridgewater probably still sees here, despite everything, a key player that perhaps isn't getting enough attention?
Amazon $AMZN: an addition of 82% to the holding,
It seems the fund believes that Amazon is the unpolished diamond that the market perhaps discarded?
Broadcom $AVGO: an increase of 45%,
Does someone at the fund believe that connectivity and custom chips are the new infrastructure?
Oracle $ORCL: a jump of 220% in holdings,
Can Larry Ellison finally smile? Because Bridgewater decided that despite the noise and crazy debt raises, it is buying more.
Reddit $RDDT: a relatively modest increase of 24%.
Micron $MU: here the numbers become science fiction with an increase of 89,377% in holding (!)
Is Bridgewater betting here on the memory market with full force, understanding that artificial intelligence consumes data and needs space to store it?
The gap between Dalio's words and the actions of the fund he founded teach us an important lesson about the gap between talk and action.
We don't listen to what they say, we look at what they buy.
Does the fund Dalio founded think that the biggest risk right now is not the global crisis, but staying out of technology companies?
In the end, we are left with the big question: does the fund of Wall Street's most pessimistic prophet not want to miss the artificial intelligence party?
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