https://outrightnews.io/elliot-management-apocalyptic-letter/

Actual letter: https://old.reddit.com/r/Superstonk/comments/yo3jge/elliot_management_apocalyptic_letter_making_the/

From superstonk, a summary:

I'll do my best to summarize the points in this letter, and bold out the more notable points;

Equities and currencies were profitable while gold, credit, and interest rates were unprofitable

They expect the downturn in the market to be worse than what it currently is due to inflation and the continuing war in Ukraine

They can't currently use TA to tell when the markets overall will stop going down They say that they've never been able to reliably use TA to predict market downturns, even after following their past successful trading techniques

(pg. 2) Banks and lenders are taking on heavy losses in MBS' and loans as interest rates and costs of houses are too damn high

They've tried to create investment portfolios by investing in a combination of stocks; stocks that do well in bull markets, and stocks that do well in bear markets (pg. 4-7) Current market events are very similar to past crashes (DOT COM Bubble, 2008, COVID), but there's reason to be optimistic as these crashes became bull rallies in the long-term

They find the current interest rate hikes insane but understandable due to short-sighted politics and unfortunate events, and expect them to go higher in the future (pg. 10) Based off past market downturns, they wouldn't be surprised if the markets fell from their high by 50%.

As a result, politicians will be under intense pressure from their citizens to get the country out of the recession and support those who will be impacted the most by the fallout

Investors shouldn't assume they know what will happen based off past market events

(pg. 12) The FED has never raised interest rates during a bear market before, yet are doing so now because of the rampant money printing with subsequent inflation; showing how bad things truly are in the markets

(pg. 13) Hyperinflation is the likeliest outcome of current events, and has been the cause of societies falling apart as well as social and international unrest

(pg. 14) Globalization, which was once a large factor of an international bull market, is now a leading cause in a bear market as every market is dependent on everyone else succeeding (i.e. rise together, fall together)

(pg.15) China has the largest bank loan to GDP ratio currently, and their failing housing market puts them at massive risk

The European military powers are incompetent despite one of its countries becoming a war zone

Everyone's trying to develop their own energy sources now so they're not reliant on power from other countries (as a personal anecdote, its because Europe relied too much on Russia for oil and energy, and now they're facing a very cold winter in the near future)

(pg. 15) While the USD has risen an incredible amount, and thus has become an economic safe haven for most of the world, it also puts it at risk of going down in value as future volatility will put it at risk of being deemed an unsafe long-term investment

(pg. 16) Capital gains are at an all-time high for companies while unemployment is low and worker power is high (according to them, anyways...)

(pg. 20) They're very interested in crypto trading and the potential of those markets, and are now following reputable crypto traders