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Ray Dalio warns earnings buffer against rising yields is shrinking

Dalio said the cushioning role of earnings could fade if free cash flow weakens, in a backdrop of rising bond yields.

Reported · Written up by our desk · Trade & Tariffs

Ray Dalio warned that the stock market’s ability to absorb rising bond yields is weakening, according to CNBC World.

Dalio said earnings have helped cushion equities from higher yields so far, but that support is becoming less effective.

He added that a potential decline in free cash flow could further weaken the earnings buffer as rates rise.

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