A cryptic tweet from “Big Short” investor Michael Burry is adding to the grim mood on a day when markets are sliding and there are signs that the US housing boom is slowing down.
As I said about 2008, it is like watching a plane crash. It hurts, it is not fun, and I’m not smiling.
— Cassandra B.C. (@michaeljburry) May 24, 2022
It’s not clear exactly what Burry , who runs Scion Asset Management, meant. Twitter users urged him to specify what he believed would catalyze another financial collapse on the magnitude of the 2008 crisis. Burry — whose bet against the housing market before the 2008 financial crisis was immortalized in Michael Lewis’s book “The Big Short” — is no stranger to drawing attention on Twitter, though he has a habit of deleting his posts. He warned retail traders about a year ago that the “mother of all crashes” was coming. His cryptic comment on Tuesday came as the S&P 500 has posted seven straight weekly declines, the worst losing streak since 2001. Government data also showed that sales of new homes had plummeted April, with high prices and a steep climb in mortgage rates appearing to cool a market that has been running hot for two years. NN: I have no doubt in my mind that the mother of all crashes is dead ahead. Its all a matter of TC… What is TC you might ask. Its the boogies men of all traders. Successful ones can cages these monsters know they can eventually escape and have to be caged and tamed again and again. Its Timing and Cash. You have got to do something very hard for humans to do and that is pick your entry spots. The next is balancing your leverage to your cash. Another very difficult thing to do. Now our beloved CFD’s are a great equalizer. But to be clear here 80% of GAMBLERS in CFD’s lose money. And we will probable be among the losing masses…