Image courtesy of Fintechs.fi
Famous from The Big Short movie and portrayed by Christian Bale, Michael Burry was the stock market trader/investor who predicted the 2008 US house market crash and profited $100M from the downfall is back to warn us all about the upcoming stock market crash.
Known to be too far ahead of his time and on average loses 50% before his predictions come true, Michael Burry started shorting major company funds early in 2021 including a $500M short position on TESLA which so far is rumoured to have cost him 35% on his position.
Image courtesy of Capital.com
Burry continues to stand behind his short positions and he is now claiming it is due to the crisis in China where major banks are currently charging default late payments to their biggest property development company Evergrande. Other reasons include the US treasury slowing down inflation during the pandemic, gold prices and Bitcoin.
Image courtesy of GZEROMedia.com
Evergrande is currently $300Billion in debt which has been a huge factor for other Chinese company stocks to crash such as Alibaba who went from $310 per share to recent 2021 lows of $144. China is a major world player and when something goes wrong there it has a ripple effect around the world.
Although Burry is currently wrong that doesn’t mean you can count him out. History repeats itself as previously mentioned in this article he is often too far ahead of the market and loses big before the bubble pops for him then to cash in on the mass profits. Did you also forget that Burry was also the man behind the GME squeeze? He was the first person to publicly notify the world of the major short positions which sparked the WSB short squeeze which saw the stock rise by over 1000% and cause a worldwide storm.
We are still going through the global Covid-19 pandemic and currently sit in a position of uncertainly. Will governments regulate crypto? Can China get out of debt? Will inflation stop people from spending? All of this is to find out and we will be reporting on it all the way.
