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Bob Elliott, co-founder and CIO at Unlimited, discusses how manias in earnings expectations can create bubbles that appear justified by strong fundamentals rather than speculation.
Elliott cautions that these situations are particularly difficult to detect because elevated prices may seem to have solid backing, masking potential risks in the market.
Elliott has previously cited challenges in the global economy, noting that Japanese household real spending is contracting at a 3 percent rate. He also highlighted continued weakness in U.S. manufacturing data despite recent optimism. These observations form part of his broader focus on fundamental trends and market risks.