Morning Call Two-Week Rally, Fed Pressure, Dalio Doubles Down 12/8/25
Dec 8, 2025
Juliana Tatelbaum, a CNBC correspondent based in London, provides early insights into European market trends and sector performance amid investor caution. Ray Dalio, founder of Bridgewater Associates, delves into the risks of market bubbles across asset classes, highlighting the stresses in private equity. He shares his perspective on the potential future trajectory of the markets. The discussion also touches on the implications of current economic policies and anticipated earnings growth.
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Market Rally Fueled By Cooler PCE
- Stocks extended a two-week win streak as markets priced in potential Fed rate cuts after a cooler-than-expected PCE print.
- The Dow and S&P sit within about 1% of all-time highs while transports and small caps gained momentum.
Dalio Sees A Broad Bubble
- Ray Dalio warned that multiple pockets show bubble-like behavior, including private equity and venture capital.
- He compared today's bubble to 2000 rather than 1929, signaling serious but not extreme risk.
Watch Liquidity In Private Markets
- Expect liquidity-driven stress to show up first in private equity, VC and private credit positions that need refinancing.
- Prepare by monitoring liquidity needs and exposure to companies reliant on fresh funding.