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Bob Elliott, co-founder and CIO at Unlimited, warns that either the anticipated $5 trillion in AI investments will result in poor returns, or the expected capital expenditures driving recent AI enthusiasm may not materialize.
According to Elliott, both scenarios point to potential disappointment ahead for investors in the AI sector.
Elliott has highlighted softening conditions in other areas this year. He recently cited reduced central bank gold buying as a likely factor behind recent market softness and reduced tightness. In another note, he flagged a sharp drop in U.S. informal sector jobs, warning this could indicate a weaker labor market than suggested by headline payroll numbers.