CHAIR:
So, I recently came across a video from the channel: New Money, with a rather ominous title that INSTANTLY got my attention: Michael Burry's Warning for the 2022 Stock Market Crash.
This was a deep dive into the impending downfall of the US Stock Market, the worsening crisis of inflation, how these major issues are continually getting worse, and why the recent downturn has only just begun….all based on the now-deleted tweets of one of the most infamous contrarian investors of all time, who - happened to be one of the few people talking about the market top…right before everything went to sh….
https://www.independent.co.uk/money/michael-burry-big-short-investor-economy-b1956722.html
So, lets talk about his his exact warnings, the data behind his predictions, what this means for you, and then…my OWN thoughts about “The 2022 Stock Market Crash,” coming from the same person who called for record high inflation, warned about the unsustainable price of Bitcoin, shorted Tesla before its drop, and cautioned that the market “was dancing on a knifes edge”…all BEFORE they happened….RIGHT AFTER, of course, you crash that LIKE BUTTON by giving it a gentle tap for the YouTube algorithm, and subscribing if you haven’t done that already…since, after all…it’s totally free, and…as a thank you for doing that, here’s a photo of a baby platypus.
https://markets.businessinsider.com/news/stocks/big-short-michael-burry-predicted-inflation-spike-investor-warned-tweets-2021-5-1030430103
https://www.cnbc.com/2021/10/15/michael-burry-of-the-big-short-asked-about-shorting-crypto-days-before-bitcoin-hit-60000.html
https://www.bloomberg.com/news/articles/2022-04-27/michael-burry-takes-dig-at-musk-as-short-seller-battle-heats-up
https://www.businessinsider.in/stock-market/news/big-short-investor-michael-burry-warns-the-stock-market-is-dancing-on-a-knifes-edge-and-fears-hes-being-ignored-again/articleshow/81154288.cms
I’ll also link to New Money’s video down below in the description for anyone who wants to check it out…he posts some incredible content, and talks about a few other details that I didn’t mention here…so, enjoy…and now, let’s begin. and also, big thank you to FTX for sponsoring this video, but more on that later. and also, big thank you to Public.com for sponsoring this video, but more on that later.
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DESK:
Now, for those unaware…Michael Burry isn’t exactly the most “formal” when it comes to his warnings.
Instead of taking an interview with a news outlet, posting a video on a YouTube channel, or writing about it on Reddit’s WallStreetBets for internet points like MOST PEOPLE DO…he takes to twitter, where he posts his detailed research…and then…immediately deletes it.
Thankfully, in case you miss it…there’s an Archive Account that reposts each and every one of his 280-Character Masterpieces…and…well…there’s a lot to unpack, especially since he’s been EXTREMELY ACTIVE throughout these last few weeks.
https://twitter.com/BurryArchive?ref_src=twsrc^google|twcamp^serp|twgr^author
As the New Money channel mentioned, Michael Burry wastes no time by taking about speculative market peaks, explaining that EACH MARKET CRASH generally bottoms at a PE RATIO LOWER THAN THE ONE THAT CAME BEFORE IT…and, as a result…he predicts the Shiller PE Ratio bottoming at 16, which - would translate to an SP500 of 1862…or, roughly A 50% LOWER DROP than where we are today.