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

Video Description

WORRIED ABOUT THE MARKET? SCHEDULE YOUR FREE PORTFOLIO REVIEW with Thoughtful Money's endorsed financial advisors at https://www.thoughtfulmoney.com 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 _____________________________________________ Thoughtful Money LLC is a Registered Investment Advisor Promoter. We produce educational content geared for the individual investor. It’s important to note that this content is NOT investment advice, individual or otherwise, nor should be construed as such. We recommend that most investors, especially if inexperienced, should consider benefiting from the direction and guidance of a qualified financial advisor in good standing with the Financial Industry Regulatory Authority (FINRA) who can develop & implement a personalized financial plan based on a customer’s unique goals, needs & risk tolerance. IMPORTANT NOTE: There are risks associated with investing in securities. Investing in stocks, bonds, exchange traded funds, mutual funds, and money market funds involve risk of loss. Loss of principal is possible. Some high risk investments may use leverage, which will accentuate gains & losses. Foreign investing involves special risks, including a greater volatility and political, economic and currency risks and differences in accounting methods. A security’s or a firm’s past investment performance is not a guarantee or predictor of future investment performance. Thoughtful Money and the Thoughtful Money logo are trademarks of Thoughtful Money LLC. Copyright © 2025 Thoughtful Money LLC. All rights reserved.