Billionaire investor warns: Stocks are losing their safety net

Ray Dalio, the billionaire founder of the world's largest hedge fund, warns that the stock market is losing its protection against rising bond yields. Strong company earnings have kept stock prices stable even as bond yields climb. But Dalio says this cushion is shrinking. He warns that free cash flow — the cash a company has left after paying its expenses — could weaken. If that happens, stocks would have less support. **Why it matters:** When bond yields rise, bonds become more attractive to investors. Stocks usually need strong earnings to compete. If earnings fall, investors may pull money out of stocks.