The Big Short Man’s Alarming Prediction of a Major Market Crash
Incredible Double Standard | broken clock | Noise and Fakes
During the 2008 financial crisis, there was a person who made billions of dollars and that person has again predicted that a big crash is going to come in the future.
I’m sure you’ve figured out who I’m talking about by now. Michael Burry, who has been shown in the movie named BIG SHORT. The movie is also based on a book with the same title, BIG SHORT.
2008
During the 2008 financial crisis, the names of many well-known traders disappeared but Michael Burry made a lot of money and gained a lot of respect. When this news broke out in the market that a trader named Michael Burry earned billions of dollars in this crisis; everyone got so much curious to know about him.
Everyone wants to know how he did all of that and what kind of strategy he used which had earned him a billions of dollars. Because everyone wants to learn and use the exact strategy used by Michael Burrry.
Magician
Recently, Michale Burry predicted that a big crash will soon come in the stock market but there was not any clarification about when and why the stock market will crash. I am sure we will know after the crash in the future why he was saying this. Of course, my friends I am not a magician or a mind reader so I can know what was going on in the mind of Michael Burry, and except for him no one knows what he is thinking when he made a prediction.
Meme Panic
Our legendary Michael has shocked everyone and given meme lovers the material to create new memes. The most important thing is that the people who have invested their money in the market are now in a panic and also quite in confusion.
Short
Among all of the news which had come out, the first news was that Michael Burry has opened a short position of $1.6 billion in the stock market. In his portfolio, he has taken SPY PUTs worth $890 million and has taken PUTs worth $740 million in the rest of the stocks (QQQ). People are worried because he has invested 90% of his portfolio in a short position, implying that he is extremely negative about the market.
Whether the stock market will fall or not I do not know but I know one thing that after hearing this news, the people who already had a short position in SPX must have been floating over the clouds in the sky. Wait a minute, do you know the history of Michael Burry?
Magic?
Does this person have a magic wand that tells him before the market crashes? I am not sure whether this person has a magic wand or not but if anyone of you knows then please tell me and everyone who is going to read this article as well by commenting in the comment section.
Anyways now let’s dig into the history of Michael Burry…
2005
In 2005, Michael Burry predicted that the subprime crisis will come. He said about the subprime crisis in 2005, but we all know that the financial crisis came in 2008, which means the market crashed after 3 years.
Michael Burry has gotten a large sum of money from investors. The investor’s money was set to be used for a short trade, but because of his prediction not coming true, the investor decided to redeem the funds. Finally, the market crashed in 2008 otherwise his career would have been finished at that time, and no one knows who Michael Burry is now.
2015
In December 2015, Michael Burry came again in front of the media and said that the stock market is going to fall but after a long time I think around after a year the market went up by 11% instead of falling as per Michael’s prediction.
2017
The series of wrong predictions didn’t stop here and once again in 2017, he predicted that because of the large profit booking a big fall will come but again his prediction failed and the market went up by 12% in 2017.
Again Michael used his so called magic wand and maybe in March or April he predicted that the stock market would crash so much that it would ruin everyone. But again, from the next month of his announcement market started going up. In the same year as COVID, the market rebounded from a 70% low and reached an all-time high.
2021
Michael began accumulating a short position in Tesla shares in February 2021. Amazingly, Tesla’s stock went up 60% from where short trades were opened.
2022
Back in September 2022, Michael predicted again that the market will fall but the market went up by 11%.
2023
Same story repeated in January 2023 like every time and his prediction proved to be wrong.
Friends, now just think how accurate this person is? I am sure we don’t even need to think about it because the accuracy is big 0%. Now I hope you understood about the prediction of this so-called legendary person and there is one more legendary person like Michael Burry on my list.
Robot Kiyosaki
You’ve probably heard of the book “Rich Dad, Poor Dad”; whether you’ve read it or not, I’m not sure. The author of this book is Robot Kiyosaki, but you may not know something shocking about this him. This person whose book is so famous all around the world, who taught about asset and liability in his book in reality his own company “Rich Global LLC” went bankrupt.
The person who gave knowledge to the world through his book, himself forgot assets and liabilities.
One thing is common in these two legendary people Michael Burry and Robert Kiyosaki that they have become famous because of only one single good event in their life.
I can write on a golden blank piece of paper that Michael Burry is going to remain bearish on the market for the rest of his life. Even if someone asks Michael in his sleep to predict the market by moving his so called magic wand, he will still answer bearish.
The market will fall in the New Year, the market will fall in Christmas, and the market will fall in the election. Fall, fall, and only fall.. Friends, is this even possible? You can also understand this simple thing even without any kind of technical analysis and research.
If you have taken billion of dollar trades, will you show it openly on social media? No, then why is Michael Burry doing this? — Called Manipulation
Big Players
The ability of the big players to maintain their short position is huge. These players can keep the option trade open for months. Small traders like us cannot sustain such a long period of time
Is Michael Burry Making Big Losses Every Time?
Even if Michael Burry loses 8 out of 10 trades and wins only 2 of them, he will still make a lot of money. How is this possible?
Assume that every time a million dollars is exchanged. There were eight incorrect trades, resulting in a $8 million loss. If it is accurate even twice, it will print a hundred million dollars. A loss of $8 million was offset by a profit of $92 million.
Perhaps
It may happen that they are playing reverse psychology with us. After gaining popularity in 2008, he had come into the spotlight. As soon as he came into the spotlight, he must have come to know that now people are going to follow me blindly.
Maybe Michael must have got the idea that if I say the opposite of what I am thinking, then the market will bounce again and again and retail traders would start opening a short position, and the price will rise because of the availability of strong liquidity, and the large profit will come in my pocket.
You should see the performance of his fund house that it is in positive and making continuous profit.
Golden Rule
Never ever follow the financial advice of any kind of celebrity, influencer, and anybody blindly without doing your own research and analysis.
The market frequently follows all of the dynamics that cause the market to rise or fall so that’s why it is very hard to predict market movement in a certain direction.
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Thank You for Reading…
Disclaimer
I am not a Financial advisor. I am not affiliated with any of the websites or coins and also this is not financial and Investment advice. This article is meant only for educational purposes. I am just sharing my thoughts and analysis based on my many years of experience.
