Why Does Cathie Wood Love to Buy the Dip?

Carson Block and Freddy Brick of Muddy Waters Capital are joined by Dan David of Wolfpack Research to discuss Cathie Wood’s propensity to double down on shares in questionable companies in the aftermath of activist short-seller reports. With recent examples like Ginkgo Bioworks, the jury is still out; but, for more mature examples like Workhorse Group and Wolfpack’s short of Skillz Inc., dip-buying appears to have backfired. The trio also debates the interconnectedness of Evergrande and China’s real estate market with their recent posturing around Taiwan. They highlight that although Evergrande wasn’t analogous to what many dubbed “The Lehman Moment” a more apt analogy could be “The Bear Stearns Moment” that proceeded Lehman’s collapse, and that if China does intend to follow through with deflating their real estate bubble a national victory in the form of reunification with Taiwan could offset some of the economic pain.