Elliott Warns Debt-Funded AI Spending Adds to Bear-Market Risks
Photo: TokenPost
In an October letter to investors, Elliott Investment Management warned that U.S. budget deficits, inflation, private-credit risks and debt-funded AI investment are raising bear-market risks. The firm compared current markets with the expansion that came before the Great Depression. It pointed to investment flowing between AI model developers and infrastructure makers, along with borrowing to pay for AI capital projects. If one or two key conditions reverse, Elliott warned, investor sentiment could swing from fear of missing out to fear of being wiped out, triggering a chain-reaction sell-off.
Source: TokenPost
