In its October letter, hedge fund Elliott Management warned investors that markets could shift from FOMO (fear of missing out) to FOGO (fear of getting obliterated). It likened today’s debt-fueled risk-taking and tech enthusiasm to the Roaring ’20s before the Great Depression, saying “virtually every alarm bell” was ringing.
Elliott cited persistent inflation, U.S. fiscal deficits, private credit exposure and excessive speculation around artificial intelligence as risks. It was particularly concerned about debt-financed AI infrastructure spending and circular investments between tech firms. The firm warned that a reversal in AI expectations could trigger a severe correction.
The warning comes as Elliott’s returns have lagged the market. The fund posted flat returns in the third quarter. It was up less than 2% in the first nine months of 2026. The S&P 500 returned nearly 13% over the same period.