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“The Big Short” Investor Claims That The Market Bottom Is Yet To Come

Author: Nidhi Kolhapur

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Nidhi is a Certified Digital Marketing Executive and Passionate crypto Journalist covering the world of alternative currencies. She shares the latest and trending news on Cryptocurrency and Blockchain.

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Burry is best known for predicting and profiting from the collapse of the housing bubble, inadvertently paving the way for the meme-stock boom by investing in GameStop, and betting against elon musk tesla and cathie wood flagship Ark fund last year.

His prediction of the 2008 housing market collapse became the subject of the book and film “The Big Short”. Since then, though, he has been busy with plenty of his own investments, including water stocks. 

This time, according to Michael Burry, the market slump may only end when consumers stop investing in tech companies, cryptocurrencies, and non-fungible tokens.

During the Christmas season, the investor of “The Big Short” projected that consumer purchasing would fall and merchants would be burdened with excess inventory. Furthermore, he dismissed the recent stock rebound as a temporary respite. These remarks were made in a series of recent tweets, which he had since deleted.

But, the question is: Why does Burry believe that the bottom is not yet in?

michael burry believes that inflation works in spikes. He believes that the bottom is not yet in and will be reached when massive-scale failures occur across industries. According to him, the failure of two SPACs ETFs is insufficient to declare a bottom. It’s unclear whether Burry considers the crypto industry’s big liquidity problem a failure.

Burry cited the recent closure of two exchange-traded funds that tracked special purpose acquisition businesses, which was one of the investment fads that lured armies of ordinary traders during the previous bull market. The two funds traded for less than two years before losing investors as their share prices plunged.

He also mentioned the crashes in cryptocurrencies, meme stocks, and SPACs, and he appears to have linked market crashes between 2000 and 2008 to what he expects to happen this year.

Moreover, the famed investor is indicating that another crisis is already beginning; in today’s tweet, he reiterated that he expects markets to go much farther. These postings are consistent with Burry’s customary market pessimistic outlook for 2022. 

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Nidhi Kolhapur

Nidhi is a Certified Digital Marketing Executive and Passionate crypto Journalist covering the world of alternative currencies. She shares the latest and trending news on Cryptocurrency and Blockchain.

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