The current rebound in stocks is unlikely to last, as warned by Michael Burry in a pair of twits this week.
Net consumer credit balances are rising at record rates as consumers choose violence rather than cut back on spending.
He asked if there was a savingsglut problem. "Now, no more." The helicopter cash made people spend again. The winter is upon us.
"Winter coming" means something terrible is going to happen and "choose violence" means causing trouble. The phrases were popularized by the TV show.
The investor of "The Big Short" fame attached a chart to his message showing that US consumer credit is rising at a higher rate than it has in the past
In May, Burry noted that American consumers were putting away less of their income, accruing credit-card debt, and likely to exhaust their savings by the end of the year.
Retailers would cut prices to get rid of their bloated inventories and consumer spending would fall as a result, he predicted.
The chief of the asset management company thinks that Americans will use their savings to deal with higher prices and that will cause asset prices and the economy to suffer.
His previous complaints that the government's aggressiveStimulus efforts are responsible for excessive consumer spending have been echoed by his latest post.
The idea that the index is back in a bull market is laughable. After the dot-com bubble burst, the tech- heavy stock index staged several recoveries of that scale.
Is the stock market a bull market? Who made this stuff up? There is a now- deleted message from burry. The Nasdaq did that seven times as it fell from its 2002 high.
dead cat bounces are the most epic, meaning that stocks often threaten to rebound during market downturns, but those rallies don't last
The investor believes the pain for investors may not end until they stop owning tech stocks, cryptocurrencies, and non-fungible token. He doesn't expect that to happen soon, since he recently complained that market "silliness" is back after two newly listed stocks skyrocketed in value by thousands of percent.
Inflation still remains problematic, but you can protect your money with this simple two part investing strategy.
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