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I don’t think the stock market has correlated with underlying economic realities in a long time, and I don’t think short selling is the cause of that.

Additionally, I’d think that the small constant corrections of short sellers helps avoid most large cost corrections later.

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The stock market is inflated by an abundance of capital which very much represents the underlying economic reality. It’s not representative of the broader economy simply because many industries like higher education is massively underrepresented.

However, once you accept those exceptions I think it’s surprisingly accurate.

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