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The recent rise in U.S. bond yields looks normal when compared to underlying statistics and anticipated tightening, according to Bob Elliott, co-founder and CIO at Unlimited. Elliott contrasted current market reactions with heightened warnings from bond market pessimists who have been forecasting severe rate increases.
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Elliott has previously pointed to risks in sectors driven by investor expectations. He recently warned that market enthusiasm for AI relies on hopes of exponential growth while actual spending is leveling off, according to a report on AI market growth. In a separate analysis, he observed that revenue growth for large AI firms is shifting from parabolic to more linear expansion, as detailed in an industry transition report.