"Big Short" Genius Warns About Markets And Bitcoin Bubble

---

Christian Bale portrayed legendary investor Michael Burry in the 2015 movie The Big Short. The man has had hordes of fans ever since. Burry, who headed hedge fund Scion during the 2007-2008 financial crisis, famously bet against the US housing market and was subsequently sued by his own investors.

When he paid out 10 times their investment and was proven right, they all dropped their lawsuits. At the end of last year, Burry informed his 400,000 followers on Twitter that he had bought GameStop after reading up Reddit.

The rest is of course stuff of legends.

Knife’s edge

Burry, who is fickle and takes long absences from Twiitter at times (he returned last year after a 3-year hiatus to comment on the US lockdowns) has once again decided to leave social media for a while. Before he did so, he sounded his last warning about the market bubble which he claims is very obvious.

pic.twitter.com/rgLGJBIHs3

— Michael Burry Archive (@BurryArchive) March 2, 2021

On stock markets, he claimed:

Speculative stock bubbles ultimately see the gamblers take on too much debt. Margin Debt popularity accelerates at peaks. At this point, the market is dancing on a knife’s edge.

On crypto, Burry stated in the past week:

Bitcoin is a speculative bubble that poses more risk than opportunity despite most of the proponents being correct in their arguments for why it is relevant at this point in history. If you do not know how much leverage is involved in the run-up, you may not know enough to own it.

:youtube[QpifG_jvYKk]

The investor did rule out going short against Bitcoin though, as his long term view of it was still positive.

I don’t hate $BTC. However, in my view, the long-term future is tenuous for decentralized crypto in a world of legally violent, heartless centralized governments with lifeblood interests in monopolies on currencies. In the short run anything is possible – why I am not short.

He also had some interesting comments about the stock markets and admitted that he is shorting Tesla.

pic.twitter.com/rBIU46Dcr3

— Michael Burry Archive (@BurryArchive) February 28, 2021

Burry also claimed that Wall Street would seek revenge against the ARK fund of Cathie Woods, as her positions in some stocks (she’s highly invested in Tesla and Bitcoin) are simply too powerful.