Bridgewater Associates founder: The 2026 US midterm elections could trigger major political changes, with a range of policies potentially being overturned.

In his 2025 year-end summary, Bridgewater Associates founder Ray Dalio stated that the 2026 US midterm elections could trigger significant political changes, with the Republican Party potentially losing seats in both the Senate and the House of Representatives, and current favorable policies likely to reverse. Taxation, regulation, and policy changes could all begin to put pressure on corporate profits. He pointed out that the depreciation of the US dollar is not just a short-term fluctuation, but a long-term structural trend, with actual returns consistently lower than non-dollar assets such as gold and the RMB. Regarding the rise in US stocks, Dalio believes this rally is primarily supported by a few large companies in the AI field. While these companies are indeed profitable and not part of a false internet bubble, the problem lies in the fact that current valuations already reflect future expectations.