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funds) could create a price floor that is non-correlative to fundamentals on the medium-term bet that life, eventually, will go on, with fallout manageable. 3) Short squeeze. Many big players are betting against stocks, presuming continued panic and dislocation in the economy.
While they could well be right, if they are not, they will struggle to "cover" their short positions and the market could spike upwards and attain, however temporarily, record highs, for which Trump would take credit. - In other words, Trump wasn't at all wise to focus so
much on the stock market, which has now dropped precipitously. Nor should Democrats looking to take down Trump in November - a lifetime away in market terms - return the favor by focusing on a heavily corrected market, which could perform an equally dramatic turn around before
the election.
- Let's rather focus on what is clear: the economy is not working for the vast majority of Americans. No matter what the stock market does, that will remain truth. #mtpol
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