Ray Dalio warns the stock market's cushion against rising bond yields is shrinking

Billionaire investor Ray Dalio warned on Thursday that stocks face mounting pressure from rising bond yields and the prospect of weaker corporate cash flows, even as earnings continue to grow. The Bridgewater Associates founder told CNBC equities have so far weathered the global bond sell-off because earnings growth has kept expected stock returns attractive, relative to bonds. But that advantage will narrow, he said, potentially leaving equities more vulnerable as financial conditions tighten.