# The AI and crypto bubbles are showing cracks — rotate into boring utility stocks for safety

_AI-generated trading idea · LONG · VDC, XLP, XLU_

> Canonical page: https://commonquant.ai/research/for-you/the-ai-and-crypto-bubbles-are-showing-cracks-rotate-into-bor--65bc3d48-aa81-4d49-9913-b3b6ee2f481a

Billionaire investor Ray Dalio is warning that the artificial intelligence boom is starting to look like a classic bubble. Traders are actively pulling their money out of crypto to chase the AI trend.

## Idea

Legendary investors are sounding the alarm that the AI rally has gone too far, too fast, while money is literally fleeing the crypto markets. This suggests that the high-risk, high-reward trades that have dominated the market are exhausting themselves. When the riskiest corners of the market start to crack, smart money usually rotates into boring, safe-haven sectors like utilities. Buying these overlooked sectors provides safety and upside if the tech sector continues to fall.

## Key details

- Symbols: VDC, XLP, XLU
- Timeframes: daily
- Tags: \#macro, \#rotation, \#defensive

## Community

- Upvotes: 7
- Views: 0
- Copies: 0
- Cosigns: 0

## News sources

- [Ray Dalio Sounds the AI Bubble Alarm \| Open Interest 6/3/2026](https://www.bloomberg.com/news/videos/2026-06-03/open-interest-6-3-2026-video) — Bloomberg
- [Bitcoin briefly drops below $62,000 as $1.5 billion in crypto longs get wiped out](https://www.coindesk.com/markets/2026/06/04/bitcoin-drops-below-usd62-000-as-usd1-5-billion-in-crypto-longs-get-wiped-out) — CoinDesk

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