Last summer, Michael Burry identified a market bubble of unprecedented size and scope and warned investors to prepare for a crash.
The fund manager of "The Big Short" fame added to his list of correct predictions by saying that he believes the collapse is in full swing.
The coin crashed. He said to check. Me crashing. Check to see if it's true. The SPAC crashed. Check to see if it's true. The cost of living has increased due to inflation. Check to see if it's true. A decade ago. Check to see if it's true. A year ago. Check to see if it's true. The year 2022, Check that it's ok.
The S&P 500 index is down more than 20% this year, the tech-laden Nasdaq is down 27%, and the price of bitcoin is down more than 50% from its November peak. At the end of June, Burry warned that the crash might only be halfway over if asset prices continue to rise.
The prices of many of the most popular meme stocks have fallen. Bed Bath & Beyond has retreated by more than half. Virgin Galactic shares have fallen by over 50% this year, while Lucid shares have fallen by over 70%.
The boom in meme stocks and other trendy assets wouldn't last.
"Fads are like housing in 2007, and fiber/.com/comm/routers in 1999," he said. It's just driven by speculative fervor to insane heights from which the fall will be dramatic and painful.
The risk of inflation was pointed out by the boss of the asset management company. He decried the promotion of meme stocks and the speculative bubble surrounding them.
After his billion-dollar bet against the US housing bubble in the mid-2000s was made famous in the book and movie "The Big Short," Burry became a household name. He took short positions against Musk and Ark Invest last year, as well as investing in GameStop before it became a meme stock.
During the second quarter, the chief sold all but one of the stocks in his fund's portfolio.
The 'Big Short' investor is special, according to an expert. He revisits Burry's bet against the housing bubble as well as his other bets.
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