- Michael Burry has shown that the stock market crash he predicted is now underway.
- The ‘Big Short’ investor joked that his followers are still asking him when the crash is coming.
- Burry suggests the S&P 500 could plunge another 53% before bottoming out.
Last summer, Michael Barry sounded the alarm about the “biggest speculative bubble in history” and warned investors investing in the hype that it was headed for the “mother of all crashes.”
he hinted that the end had finally come Tweet after deletion this week.
The fund manager of ‘The Big Short’ fame shared a screenshot of the S&P 500 chart. This shows that the benchmark stock market index has fallen 18% from his December peak, despite several blistering gains this year.
“Still people keep asking me ‘Crush?
Burry suggested in May that the S&P 500 could fall by 1,900 points, or another 53%, over the next few years based on past crash developments. Moreover, he dismissed this year’s stock rally as a bear market rally or “dead cat bounce”, a temporary reprieve along the road to inevitable disaster.
The chief of Scion Asset Management’s stance appears to be that the market boom is over, stocks are headed down, and any gains will prove short-lived.
Another devastating investor and market historian, Jeremy Grantham, also dismissed the recent rally in stocks as a bear market rally in a new research note titled “Entering the Superbubble’s Final Action.”
Like Barry, he warned of an “unprecedented and dangerous combination” of extremely overpriced assets, commodity price shocks and the Federal Reserve’s intention to keep inflation in check by cooling the economy.
“Each cycle is different and unique, but all the historical parallels suggest that the worst is yet to come,” said Grantham.
Barry is best known for his starring role in ‘The Big Short,’ which chronicles the multi-billion dollar bet against the US housing bubble of the mid-2000s. He also bought shares in GameStop before the video game retailer became the ultimate meme stock, betting on Elon Musk’s Tesla and Cathie Wood’s Ark Invest last year.
The investor sounded the alarm in August, revealing that it had effectively liquidated its US equity portfolio in the second quarter of this year. At the end of March he owned 11 of his shares worth $165 million, three months later he had only one share and he only held a position of $3.3 million.
Here’s a screenshot of Burry’s recent tweet:
read more: Michael Burry’s expert analyzes what makes “big short” investors special. He also revisits Barry’s iconic bet on the housing bubble and his GameStop, Tesla, and Ark bets.