Monetary Matters with Jack Farley Why Carson Block Won’t Short AI Names Until the IPOs Begin & Muddy Waters’ Pivot to Long Resources Stocks & S&P 500 Momentum
80 snips
Feb 4, 2026 
Carson Block, founder of Muddy Waters Capital and a forensic short-seller turned diversified allocator. He explains why he won’t rush to short flashy AI names until an IPO flood creates supply. He also discusses Muddy Waters’ shift into metals and mining, Vietnam and India opportunities, and a momentum-driven S&P 500 strategy. Topics cover timing, hype versus supply, and expanding long strategies.
AI Snips
Chapters
Transcript
Episode notes
AI Hype Breeds Pretenders
- AI hype has broadened into many industries, creating genuine leaders and numerous pretenders.
- Carson Block warns timing matters: wait until speculative supply overwhelms demand before shorting AI names.
Don't Short Momentum Prematurely
- Avoid shorting momentum stocks even if fundamentals look poor.
- Wait until demand is crushed by oversupply or the stock is clearly on the downswing before acting.
Pair Momentum With Fundamental Shorts
- Use momentum strategies as a pragmatic complement to activist shorting.
- Muddy Waters runs a concentrated monthly-rebalanced S&P 500 momentum book that delivered strong gross returns.