The bet here is that the Nasdaq still has further to fall because the forces driving the selloff — tightening money conditions and foreign investors pulling money out of U.S. markets — haven't gone away yet, even after a 12% drop from the peak.
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The author thinks the S&P 500 is worth betting against right now because global money flows are shifting in ways that are pushing stocks lower, and they'd stay cautious until those pressures ease.
After Alphabet's stock dropped 7% following earnings, the source believes investors overreacted to surface-level concerns about spending and accounting items while ignoring that the underlying business is genuinely accelerating — with search holding strong, cloud revenue nearly doubling year-over-year, and overall revenue up 24% — making this dip a potentially attractive moment to buy.