Leverage risk shifts to retail equity focus, Bob Elliott warns

Leverage risk shifts to retail equity focus, Bob Elliott warns
Leverage risk diffuses to retail equity

Bob Elliott, co-founder and CIO at Unlimited, warns that leverage risk has shifted from a small number of banks engaged in real economy lending to becoming highly diffuse and concentrated on boosting retail equity returns.

This reflects a significant change in where leverage risk is concentrated within the financial system.

Elliott has recently flagged risks in other market segments. He cited reduced central bank gold buying as a likely factor behind recent market softness. Elliott has also warned that $5 trillion in planned AI investment may bring poor returns or fail to meet capex expectations.

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