The US Will Likely Sink into Economic Recession

Tesla's founder, Elon Musk, said on Twitter that from any perspective, the stock market had been surging over a fair level previously, so there will inevitably be some corrections.

Data from the financial analysis institution S3 Partner shows that as of this week, Apple has overtaken Tesla as the most shorted company on US stock market, with open shorts totaling US$12.656 billion. Teslas open shorts reached US$12.209, followed by Microsoft, Netflix and Amazon. Chinese retail giant Alibaba ranked no. 7 among the most shorted companies.

The public health emergency and oil price slump were only a beginning of US stock markets bearish turning point after staying upbeat for 11 years. Many have ignored the invert yield curve of major US Treasury Bonds which implied underlying weakness of the US economy

According to predictive models, US has a 53% chance to sink into recession in the next 12 month, much higher than previous forecast of 24% and a record level since economy recovered from the recession in June, 2009.