Billionaire Ray Dalio warns of a potential “capital war” due to rising geopolitical tensions that could disrupt global capital flow, impacting markets. The AI build-out requires $3 trillion by 2030, with much relying on debt financing. History shows debt market disruptions can crash overvalued equity markets. Dalio’s warning raises concerns for the stock market’s future stability. The AI arms race driving the S&P 500 to historic highs is fueled by debt, raising the risk of a market downturn. Investors should focus on high-conviction stocks with strong cash flows and consider the impact of rising borrowing costs on their investments.

Read more at Nasdaq: Will the Stock Market Crash in 2026? Billionaire Ray Dalio Just Gave a Clear Warning to Investors.