Dalio: Treasury Yields Could Surge Over 5%, Hurting Stocks and Forcing Higher Rates

Ray Dalio says the 10-Year Treasury yield could rise to over 5%, further hurting stocks.

Surging Treasury yields make bonds more attractive vs. stocks, causing pain for equities.

Dalio believes the Fed's 2% inflation target is too low, requiring higher rates long-term.

Foreign currencies and assets should be part of a diversified portfolio, Dalio says.

Dalio sees huge potential in AI but warns of a speculative bubble in AI companies.