Market Watch Weekly | July 10th, 2020 | Got Short, Shorts?
Erik Dekker - Jul 10, 2020
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Tesla became the first company in history to have a $20 billion short bet against the stock. For years now, Tesla has been a popular target of short sellers, who are people who bet against stocks and benefit if they go down.
Well, we closed the first full week of July with much the same positive momentum that has propelled stocks higher the last 3 months. Moving markets this week was continued progress on the jobs front with employment data on both sides of the border coming in better than expected. Given the lion's share of GDP comes from consumer spending, improvement in the labour markets will be paramount to the economic recovery.
Meanwhile, there has been a lot of talk this week about the increase in COVID-19 cases in the United States. We think the reopening of the economy will proceed in a "two steps forward, one step back" fashion as new cases and hotspots slow reopening plans and certain industries and regions experience lingering impacts. What is clear to us is that we are not shutting down economies in the same fashion that we saw in March.
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