Muddy Waters’ Carson Block on How AI Could Unwind the S&P 500 | #640

My guest today is Carson Block, founder of Muddy Waters Research & Muddy Waters Capital and one of the last short sellers still standing.

In today’s episode, Carson Block explains why he thinks AI could displace 15% of knowledge workers and unwind the market’s biggest stocks. He breaks down his short of SoFi’s aggressive loan accounting, why record-tight credit spreads worry him, and how he trades that risk with put spreads. 

To close, Carson explains why he still calls China uninvestable and recounts his hardest battles.

(0:00) Starts

(1:02) Carson Block on the evolution of short selling

(3:03) The impact of AI on jobs, economy, and markets

(9:43) Evolving Muddy Waters' business model beyond short-selling

(13:32) Investing in momentum and junior gold miners

(17:52) Navigating markets amid AI disruption and labor market impact

(25:21) Thoughts on historically low corporate yield spreads

(30:25) Carson's short call on SoFi

(38:10) Carson's most memorable investment