‘When the S&P folds in half, everybody gets hit’: A veteran market bear cites 4 reasons why stocks are at risk of a broad-based crash – including the possible implosion of high-growth names like Tesla

• Markets are due an “extraordinary reassessment,” which could prompt a stock market crash, according to short-seller Rob Majteles.
• Frenzied markets don’t represent the reality of the current situation, he says.
• Majteles highlights the four key catalysts that could cause the crash.

The stock market correction will be enormous as investors start to see the reality of the crisis at hand, according to Rob Majteles, a short-seller and founder of Treehouse capital.

Citing Ben Hunt’s theory of markets as a ‘political utility’, Majteles argues that they simply don’t express views on risk reward or the state of things.

“I have no doubt whatsoever, if equity markets in particular, reflected the agony on the ground, we would have dealt not just with, you know, better and broader relief and stimulus packages, we probably would have tackled the pandemic more seriously,” Majteles said.