‘Big Shorter’ Michael Burry calls biggest share market bubble of all time

An ominous forecast from an iconic US hedge fund manager?
The post ‘Big Shorter’ Michael Burry calls biggest share market bubble of all time appeared first on The Motley Fool Australia. –

If you’re not familiar with Michael Burry the man, you might know of his likeness — played by Christian Bale — in the (rather good) 2015 film ‘The Big Short’.

Mr Burry is a US hedge fund manager who shot to fame in the global financial crisis of a decade-and-a-half ago. Burry was one of the only fund managers in the US who saw the canaries in the coal mine of the ill-fated US housing market back in 2006 and 2007.

He lost millions of dollars (and many of his investors) betting against the housing market, only to make billions when the housing sector collapsed and sparked the global financial crisis.

As such, he’s now one of the most respected money managers on Wall Street. That’s despite taking an investing hiatus for a few years after making his ‘big short’.

But now, Burry is back (baby), heading the hedge fund Scion Capital. He’s also back on Twitter. Here’s a tweet Burry made early this morning:

People always ask me what is going on in the markets. It is simple. Greatest Speculative Bubble of All Time in All Things. By two orders of magnitude. #FlyingPigs360

— Cassandra (@michaeljburry) June 15, 2021

Wow, the “greatest speculative bubble of all time in all things”? Twice over? That’s quite a bold statement, to say the least.

Burry bubble, toil and trouble?

Burry has come out before and decried the rise of a number of different trends and assets. These include Bitcoin (CRYPTO: BTC), Tesla Inc (NASDAQ: TSLA), electric batteries and vehicles, software-as-a-service (SaaS), and so-called ‘meme stocks‘.

Meme stocks is a term that’s emerged to describe companies with share prices that have been caught up in social media-fuelled buying frenzies. It typically encompasses shares like GameStop Corp. (NYSE: GME), AMC Entertainment Holdings Inc (NYSE: AMC) and BlackBerry Ltd (NYSE: BB).

But that’s not to say Burry hasn’t benefitted from this ‘bubble’. According to Markets Insider, Burry was actually a significant holder of GameStop shares before the Reddit-fuelled rampage the company’s shares went on a few months ago. He used the opportunity to cash out, no doubt banking a large profit.

Still, this warning will no doubt cause some concern for any investor who follows Burry or accepts his investing prowess.

On a final note, you might notice Burry’s Twitter display name is ‘Cassandra’. After some quick research, this writer found that Cassandra was a figure in Greek mythology – a Trojan princess who was cursed with the ability to see the truth, but never to be believed.

Another big statement from Mr Burry!

The post ‘Big Shorter’ Michael Burry calls biggest share market bubble of all time appeared first on The Motley Fool Australia.

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More reading

Why Tesla’s restaurant plan is an unprofitable detour

What is a meme stock, and why is everyone talking about them?

Is cryptocurrency investing or gambling? 3 things you need to know

GameStop earnings: No sign of a turnaround

4 ASX shares to gain exposure to international market growth: fund manager

Motley Fool contributor Sebastian Bowen owns shares of Tesla. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended Bitcoin, Tesla, and Twitter. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended BlackBerry. The Motley Fool Australia has recommended BlackBerry. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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