If we thought the dot com bubble of the ’90s or even the housing crash of 2008 was significant, then we haven’t seen anything yet.
Well, at least in the eyes of Michael Burry, the investor who gained fame for calling the 2008 crisis, and more importantly, bet billions of dollars against it and won big.
When Burry vocalized his beliefs on the coming market crash, he was mocked and scolded for it. Since then, there have been books written and even Hollywood movies starring some of the largest actors portraying him.
Before the ‘Big Short’ investor made his prediction on the crash, markets were booming and everything seemed fine.
In “short” (yes, pun intended), it’s not always easy going against the herd mentality. But it sure paid off in his case.
And now, Burry believes that the current markets are “dancing on a knife’s edge.”
He tweeted: “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.”
The hashtag he referenced, “#FlyingPigs360,” eludes to the famous Wall Street saying, “Bulls make money, bears make money, but pigs get slaughtered.”
In other words, don’t be greedy.
Michael says the cause of the coming crash can be found in over-hyped, overvalued, highly speculative assets and compares “meme stocks” like AMC and GameStop to the housing and dot com bubble.
Billionaire investors like Burry are warning the buzz isn’t expected to last.
“On the whole, not wrong, just driven by speculative fervor to insane heights from which the fall will be dramatic and painful,” he followed.
Burry is also challenging risky assets like Bitcoin, saying he questions its long-term prospects, especially since he believes that authorities would soon squash threats to their currencies and launch their digital notes and coins.
He’s not alone in his warning.
“Those saying me and Munger and Singer are so out of touch are not considering that we have seen this all before, and not just once,” said Burry.
We’re not saying that just because they are wealthy and seasoned investors that they are completely accurate in their predictions, but they are billionaires for a reason, right?
Whether it be Michael Burry, Charlie Munger, Paul Singer, or the average American, a large portion of those questioning their sanity, ironically, are not only billionaires…
We don’t know exactly what will happen next, but we’re preparing for either outcome.
Learn how to diversify and protect your wealth against the upcoming market volatility with assets like gold by calling American Hartford Gold at 800-462-0071.
