Hedge Fund Giant: All Bear Market Alarms Are Sounding, Current Market Highly Similar to Pre-Great Depression Era

BlockBeats news, November 3 - Elliott Investment Management, the hedge fund giant owned by Paul Singer, warned in its October letter to investors that the current market bears a high degree of similarity to the boom period before the Great Depression, and that almost all alarms signaling a major bear market have been sounded.

Elliott pointed out that U.S. fiscal deficits, stubborn inflation, private credit risks, and the AI investment frenzy are accumulating market risks, especially the circular investments between AI model companies and infrastructure manufacturers, as well as the debt-driven expansion of AI capital expenditures. If one or two of these key factors reverse, market sentiment could quickly shift from FOMO (fear of missing out on gains) to FOGO (fear of being completely crushed by the market), triggering a chain sell-off.

Elliott co-CEOs Paul Singer and Jonathan Pollock stated that the top priority now is to protect capital and reserve funds for investment opportunities after market turmoil. The fund returned slightly less than 2% in the first nine months of this year, significantly lagging behind the S&P 500 index, which rose about 13% over the same period.