Carson Block: Famed Short-Seller Explains Why The Market Is "Broken"

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As mentioned many times on this program, stocks entered the year trading at or near record-high valuation extremes.

When stocks are at such overbought extremes, short-sellers smell opportunity. They've certainly had a lot of it over the past two weeks.

Today we have the good fortune of speaking with one of the best known short-sellers in the business, Carson Block, founder of Muddy Waters Research.

He's come to the conclusion that the markets, especially in the US, are "broken"

To find out why, watch this video.

Follow Carson at https://muddywatersresearch.com/

Learn more about his Vietnam fund at https://muddywatersasia.com/

Or lean more about his mining fund at https://muddywatersresources.com/

#shortselling #valuations #fraud

0:00 – Introduction to Thoughtful Money and guest Carson Block
0:32 – Overview of short selling and its role in market corrections
2:25 – Why Carson believes U.S. markets are structurally broken
4:06 – The impact of passive investing on stock valuations and market fragility
7:26 – Risks of a passive-driven downturn and potential market collapse
10:03 – The Federal Reserve’s role in sustaining the financial system
13:03 – Market cycles: Boom, bust, and the next potential crisis
17:02 – Short sellers as market watchdogs and fraud investigators
22:24 – Carson’s early career, exposure to fraud, and founding of Muddy Waters
27:18 – The meme stock phenomenon and its impact on short sellers
35:31 – Stock buybacks as a legal form of stock price manipulation
44:01 – The audit profession’s failures and lack of corporate accountability
49:00 – Investment advice: How retail investors should navigate today’s market
52:00 – Warning signs to watch for in an impending market downturn
1:03:45 – Final advice Stay patient, ignore short-term noise, and monitor for major shifts
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