The stock market has been doing well over the past few years, with both… Standard & Poor’s 500 and FTSE 100 index Hit record highs.

But as valuations rise and geopolitical tensions rise, fears of a new collapse are beginning to spread. Just last month, billionaire investor Ray Dalio expressed concerns about a possible market crash.

So, what exactly to expect? What should investors do to protect themselves?

A “capital war” is coming

Dalio may not be as famous as Warren Buffett. But he likewise has an impressive record of beating the market over the long term, and is the founder of Bridgewater Associates, the world’s largest hedge fund.

Speaking in Dubai in February, he expressed concerns that geopolitical and trade escalation and sanctions would lead to a decline in purchases of US Treasuries from foreign investors, especially from China.

Why is this so dangerous?

As demand for buying US debt declines, yields on government bonds rise to attract investors again. But since Treasury yields also pay the coupons that investors demand for corporate bonds, US debt as a whole becomes more expensive.

If it is not addressed, borrowing costs for both the US government and US companies may rise significantly.

This is clearly an issue for businesses of all sizes. But it is particularly disastrous for US tech giants who currently rely heavily on debt financing to fund their bold AI spending plans.

If debt becomes too expensive, spending on AI infrastructure could increase dramatically, bursting the so-called AI bubble and potentially leading to a stock market crash.

What now?

It is certainly alarming to hear savvy investors like Dalio warn of the impending market collapse. However, it is important to realize that this scenario is by no means foolproof.

So far, the latest data from the US Treasury Department shows that the opposite is happening. In 2025, foreign investors invested $1.6 trillion in US assets, up from $1.2 trillion in 2024. While China has been a net seller of US Treasuries, the high yields seen so far have attracted new pension funds, asset managers, and insurance groups to take advantage of the opportunity.

In other words, Dalio’s prediction of a debt spiral may never come true.

But let’s assume the worst and say disaster is around the corner. What should investors do now?

Take advantage of the chaos

With so much wealth concentrated in the technology sector, there are plenty of other companies in other sectors that have fallen under the radar. Thus, even in today’s market, some attractive non-AI-related opportunities have emerged.

takes Waste management (NYSE:WM) is a prime example to consider.

The idea of ​​investing in a great garbage collection business may not seem particularly exciting. But beneath this ugly veneer lies an American monopoly, with a contractually restricted, long-term revenue stream that automatically increases with inflation.

During recessions, demand stays the same. This consistent and reliable income, coupled with promising gas-to-power projects, has translated into impressive free cash flow generation that has paved the way to 23 consecutive years of increased dividends.

Dalio’s forecast of higher borrowing costs could potentially pose a threat. Ultimately, building and maintaining waste management infrastructure is not cheap. It could hinder future free cash flow growth. But as a long-term defensive holding, Waste Management certainly looks interesting in an uncertain stock market environment.