Bloomberg Surveillance · Thursday, July 9, 2026
While acknowledging the difficulty of timing market bubbles, Bob Elliott advises long-only investors to rebalance their portfolios rather than doubling down on the current AI trend. He suggests that the pressure to invest in the mania should be resisted, as a catalyst for a market shift will inevitably emerge.
“First of all, if you're a largely long only investor, the trade off here is do you lean into this mania or do you say, are you thankful for the gains? Rebalance back and prepare for a little tougher environment ahead.”
“And so really it's about rebalancing. That's the most conservative way to deal with this is to not lean in. There's all this pressure to lean in. Don't lean and rebalance back and wait for There's going to be a time, And the question is what is the spark in the sparks that pop bubbles are very very hard to recognize on a forward looking basis, but there will be something.”