- Michael Burry warned the stock market this weekend.
- “Big short” investors said extreme speculation and debt could cause the stock market to crash.
- He said that Bury’s warning was ignored, just like during the housing bubble.
- Visit Business Insider̵
Michael Burry warned over the weekend that rampant speculation and widespread betting on borrowing have pushed the stock market to the brink of collapse.
Investors tweeted: “Speculative stocks will eventually bubble up and gamblers have taken on too much debt.” There is also a chart showing the S&P 500 index and margin debt levels in recent months Are soaring. “The market is developing rapidly.”
Bury said that the flow of cash from actively managed funds to index trackers, as well as the craze of day traders sharing tips and touting meme stocks on social media, contributed to the market’s rise.
He said: “The loss of IQ from passive investment and the #stonksgroup hype increase the danger.”
The person in charge of Scion Asset Management emphasized that the number of call options on another Twitter transaction has seen a “substantial increase.” He added the tags “#cautiontothewind” and “#blowofftop” to emphasize his point that these types of betting will push the stock to the extreme.
Burry is known for his multi-billion dollar bets on the US real estate market that collapsed in the mid-2000s, which is immortal in “Big Short”. Christian Bale played him in the film adaptation of the book.
When he supported video game retailers and wrote a few letters to their bosses in 2019, the investor also laid the groundwork for GameStop’s brief tightening.
Bury said on Twitter on Sunday that his latest warning was ignored, just as Wall Street cancelled his warning during the housing bubble.
He said: “People said I didn’t warn last time.” “I did it, but no one listened. So I warned this time. And still no one listened. But I have evidence that I warned.”
Burry doubled his views by adding the tweet to his Twitter resume. He has used “Cassandra” as his username-referring to the priestess in Greek mythology. She was cursed to have true prophecies, but never believed it.