Elliott warns of potential bear market amid reported gains below 2% through September 2026

In an October investor letter, Elliott warned that a substantial bear market may be ahead. The $80 billion hedge fund reportedly posted flat third-quarter returns, with gains below 2% in the first nine months of 2026. It compared debt-fueled risk-taking and technology hype to the Roaring ’20s and warned that a pullback in AI investment expectations could help trigger a severe market decline.