Monday, February 3, 2020

A key test: The Zero Hedge market bottom?

The website Zero Hedge has built a successful franchise on the internet highlighting bearish and market crash narratives with a series of half-truths, misinformation, and conspiracy theories. A recent screenshot of Zero Hedge headlines gives you an idea of their editorial bias.

In other words, it occupies the supermarket tabloid niche of financial news.

A recent Buzzfeed story revealed that Zero Hedge, which had 670,000 followers, was permanently banned from Twitter for violating its platform manipulation policy. In one article, Zero Hedge accused a Chinese scientist of releasing the coronavirus from a bioweapons lab, released the scientist's email and phone number, and invited readers to "pay the scientist a visit".

Notwithstanding the controversy over Twitter's actions, could this incident may be a sign of the Zero Hedge market bottom, marked by peak hysteria over the coronavirus threat.

Here are the bull and bear cases.

The full post can be found here.

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