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Ray Dalio warned stocks are losing their buffer against rising bond yields

The Bridgewater Associates founder said the cushion that earnings growth once provided equities is shrinking as bond yields climb

Jemal Countess/Getty Images for TIME

Bridgewater Associates Founder Ray Dalio warned on Thursday that stocks face growing pressure from rising bond yields, as the earnings-growth cushion that has protected equities from higher borrowing costs begins to erode.

Dalio told CNBC that at the start of this cycle, stocks were priced to deliver substantially better returns than bonds, a gap wide enough to keep investors buying equities even as borrowing costs moved higher. But that gap has been closing as........

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