Ray Dalio Says Stocks Are Losing Their Buffer. Rising Bond Yields Are Becoming Harder To Ignore.

The Bridgewater Associates founder said that stocks entered the current cycle offering investors a considerably better expected return than bonds, giving equities room to withstand higher interest rates. (Credit: Getty Images)

Ray Dalio said the stock market has been able to absorb rising bond yields because corporate earnings remain strong, but that protection is getting thinner as borrowing costs stay elevated.

The Bridgewater Associates founder told CNBC that stocks entered the current cycle offering investors a considerably better expected return than bonds, giving equities room to withstand higher interest rates.