The financial markets are signaling a remarkably bullish outlook, with both stock and bond markets fully embracing a “run it hot” trade. However, this aggressive market pricing stands in stark contrast to the pessimistic views held by bottom-up analysts, companies, and economists, according to a recent analysis by Bob Elliott, CIO at Unlimited Funds.
What Happened: Elliott, in a detailed X thread, highlights this unprecedented “divergence” which he has “never seen” in his professional career outside of typical cyclical bottoms.
Following Tuesday’s surge in the equity market, market-based pricing of growth expectations has almost entirely recovered its earlier drop this year, now sitting just a few points off highs.
As highlighted by Elliott, this sentiment is reflected in large-cap 12-month forward price-to-earnings …
Full story available on Benzinga.com
The financial markets are signaling a remarkably bullish outlook, with both stock and bond markets fully embracing a “run it hot” trade. However, this aggressive market pricing stands in stark contrast to the pessimistic views held by bottom-up analysts, companies, and economists, according to a recent analysis by Bob Elliott, CIO at Unlimited Funds.
What Happened: Elliott, in a detailed X thread, highlights this unprecedented “divergence” which he has “never seen” in his professional career outside of typical cyclical bottoms.
Following Tuesday’s surge in the equity market, market-based pricing of growth expectations has almost entirely recovered its earlier drop this year, now sitting just a few points off highs.
As highlighted by Elliott, this sentiment is reflected in large-cap 12-month forward price-to-earnings …
Full story available on Benzinga.com
The financial markets are signaling a remarkably bullish outlook, with both stock and bond markets fully embracing a “run it hot” trade. However, this aggressive market pricing stands in stark contrast to the pessimistic views held by bottom-up analysts, companies, and economists, according to a recent analysis by Bob Elliott, CIO at Unlimited Funds.
What Happened: Elliott, in a detailed X thread, highlights this unprecedented “divergence” which he has “never seen” in his professional career outside of typical cyclical bottoms.
Asset markets are pricing in one of the best possible outcomes ahead while those folks looking bottoms up are expecting a notable deceleration ahead.That’s a divergence I’ve never seen in professional career outside of cyclical bottoms (which occur for understandable reasons).
— Bob Elliott (@BobEUnlimited) May 28, 2025
Following Tuesday’s surge in the equity market, market-based pricing of growth expectations has almost entirely recovered its earlier drop this year, now sitting just a few points off highs.
As highlighted by Elliott, this sentiment is reflected in large-cap 12-month forward price-to-earnings …Full story available on Benzinga.com Read MoreAnalyst Color, Bob Elliott, bonds, bottom up, Divergence, Earnings, earnings estimates, Equities, Macro Economic Events, Macro Notification, Market Summary, News, p/e ratio, QQQ, SPY, stock market, stocks, top down, Bonds, Broad U.S. Equity ETFs, Futures, Economics, Markets, Analyst Ratings, ETFs, General, SPY, US78462F1030, QQQ, US73935A1043, News, Analyst Color, Equities, Macro Economic Events, Market Summary, Macro Notification, Broad U.S. Equity ETFs, Bonds, Futures, Economics, Markets, Analyst Ratings, ETFs, General, Benzinga Markets
