Michael Burry: EVERYONE'S Lying!! A BIGGER Crash Is Coming

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Michael Burry made billions not once, not twice, but three times. That’s right, after predicting the dot-com bubble and the 2008 recession, he also predicted the most recent market correction. The market has already dropped significantly but Burry believes that this is just the start of much more to come. He actually still sees the market crashing over 50% more from the current levels. This video will cover how Burry has already made millions and how you can hedge your portfolio just like Burry.
A lot of investors call Michael Burry a broken clock because he makes the majority of his money from market crashes. Timing the market is notoriously difficult, and Burry is not immune to that. He has been early to every prediction he’s made, but he’s also been right at the end. Burry recently tweeted, “Habitually be 1-2 years early on literally everything, and you too can attain Broken Clock status.” Burry first made his market crash prediction in late 2021. While it’s been a while since then, the situation has played out exactly as he predicted. He foresaw accelerating inflation, a crash in growth stocks, an overall market correction, and a crash in bond prices. Burry is always early, but he always seems to end up right no matter what. One of the key reasons why Burry has been able to predict market crashes is because of the predictability of human nature. While technology has evolved, human behavior never changes and history shows that. Burry said that “3rd time’s a charm. 10 years leading to a financial crisis - Yellow S&P 500 2000, White S&P 500 today, Green Dow 1929. Got to love human nature. Nothing if not consistent.” The yellow line represents the speculation during the dot com bubble. The green line resembles the roaring 20s before the Great Depression. Both of these periods include unprecedented levels of financial risk that ultimately led to a sharp downfall. In the dot-com bubble, we saw unprofitable internet stocks rally 1000 or even 2000% before crashing to zero. The roaring 20s also had ridiculous levels of speculation. Stock prices quadrupled within the span of nine years and most investors were convinced that prices would continue rising. Burry tweeted a newspaper showing how ridiculous the speculation was. The headline explained how even though the market went down for the day, a rally at the market close cheered brokers. Both of these bull runs point towards one behavior, which is greed. This greedy behavior also occurred in 2020 and 2021. While the market might rebound in the short term, Burry sees the market crashing over a one or two-year span. “After 2000, the Nasdaq had 16 bear market rallies 10% averaging 22.7% before bottoming down 78%. After 1929, the Dow had 10 bear market rallies 10% averaging 22.8% before bottoming down 89%.” Burry is essentially saying that the market will undergo short-term rallies, but you shouldn’t take that as a signal of long-term recovery. He further explained his prediction by saying that “dead cat bounces are the most epic. 12 of the top 20 Nasdaq 1-day rallies happened during the 78% drop from 2000’s top. 9 of the top 20 S&P 500 1-day rallies happened during the 86% drop from the 1929 top.” This tweet brings out an intriguing and deceiving correlation. The market always rallies the most during long-term market crashes, which is extremely misleading. Burry has pointed out a lot of correlations, but we all know that correlation does not equal causation. Michael Burry has spotted some frightening fundamentals that are backing up his prediction. Everyone knows that the macroeconomic situation is horrifying. Some economists will tell you that the Ukraine-Russia situation is on the brink of collapse. Others will tell you that China’s economy is weak or US interest rates are going to continue increasing. All of these macro situations may be true but there’s only one factor that will ultimately crash the economy: the consumer. The economy is practically purely driven by the consumer. Almost 70% of the US GDP is just from personal consumption expenditures. If the consumer feels weak at any point, the entire economy will fall apart. The current macro issue centers around the lowering purchasing power of the consumer. If we all stop consuming as much and start saving, the economy is going to crash. Burry said that “This is the problem. Last 18 months -$850B in direct stim checks, $400B in cash out refis, $1+T in forgivable loans ($250-500B of it fraudulent), another $4 trillion indirect, etc. What recapitalizes the consumer now? Higher wages can’t do that.” The economy is experiencing immense price increases and consumers like yourself are feeling that your money is worth substantially less. This lowering purchasing power is not just anecdotal.

[winifredmorris]

There's no shortcut to getting rich, but there are smart ways to go about it. I realized early in life the importance of investing for financial independence and have invested with great returns working with a professional

[CrnagOwnz]

You gotta admit we are blessed to be alive during these times... I know its destroying people lives which is terrible, but man is it getting entertaining. With all this corruption that is finally coming out, we WILL come together and stand up to this shit !!

[dustinbowie]

Everybody close to retirement already knows most of these. Real question is where and how to go about these investments factoring the inflation rate. Is there even any other good investment options with great profits...

[adamjankowski]

we have one huge difference between 1929, the dot com bubble, and today... 401k's. In reality we wont see the dow go down a huge percentage but the fact that rising cost of goods due to inflation caused by the printing of money will result in your retirement being worth nothing. The government is great at figuring out how to steal your money and let banks play with it.

[PhilipMurray]

<<Here are three guidelines to think about when investing over a short time horizon:
Determine your level of risk
Consider short-term instruments
Synchronize goal timing with your assets>>

[Derisvalda]

INVESTING MAKE UP THE TOP-NOTCH HEMISPHERE OF WEALTH, THAT IS MORE REASON ONE SHOULD SAVE AND INVEST TO SECURE MORE PROFIT AND ENSURE

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[paulalonso]

Making money is the plan and with Bitcoin your plans can be accomplished.

[Patriciacraig]

When the stock market is back up, you will wish to have invested today in the red. you may never see these prices again. There’s always opportunity within chaos you just have to got the eye for it.

[stephenbayne]

Your short video condensing such a serious topic from the greatest in these market conditions was done well, thank you. Great breakdown on a frightening market assessment, at least we have a heads up so can plan accordingly!

[flossietaylor]

As an investing enthusiast, I often wonder how top level investors are able to become millionaires off investing. I've been seeking some investment guidance and It seems like I am never able to identify trends, options always go against me, and I can't utilize scanners efficiently. I am looking for a simple, reproducible passive income strategy that supplements my income and will eventually replace my wage income. I will really use some advise please.

[nicolasfelipe]

Michael Burry is a high end mathematician.

[DouglasDavis]

1 factor that has never been decreasing populations world-wide. China and Japan being the highest. At no point in modern economics has the population declined. The US is a bit behind the decline as it has higher immigration, but the birthrate is less than replacement. Stocks for the most part are priced based upon growth. The 100+ years of growth are done. the globalization of trade is shrinking. countries will have to do more locally to reduce resource usage due to travel and reduce risk to supplychain issues. 1st world nations with good natural resources/tech will fair the best. China is screwed, which is why Xi is crushing chinese companies that get too rich.

[jish]

The fact this guy has predicted multiple crashes correctly and recognizes the problems before hand is why I'd trust this guy above any other and would follow his lead, because if anyone's gonna be right on how things go, it's him.

[Southwesterncannabis]

consumers are slowing down even all my grocery's stocks are staring to flat line even the canadian bank stocks are falling housing market is slowing down over here its like 2008 all over again

[danieljamal]

Investing in the stock market is the best option to make a passive income. Virtually all the markets are crazy, most people pay more attention to the shiniest position on the graph, I'm keeping a diversified portfolio.

[marksway]

Many people anticipate a market crash, but I must stress that it is just speculation. When all of this is over, many people will regret not buying now because a market fall is always a chance to purchase. However, this is my most genuine opinion.

[robertmolitor]

I live in canada. I got zero covid relief and ive worked 6 days a week since before it hit. I knew I was going to be stuck paying for all that spending our government did and I am. I worked and I am now paying for those who got paid not to.

[HeAhaBro]

I can't wait to watch "the big short 2".

[arigutman]

I do not think I have ever seen Michael Burry's name placed next to anything positive when it comes to the market... Say something enough times and eventually you will be right... The reality is he could be right and perhaps he is wrong, then what? Therefore, the key is to dollar cost average into the market and do so by way of choosing fail safe investments like indexes or ETFs that cover the entire market. If thereafter you want to be riskier then move to individual stocks with dominance in the industry say AAPL, MSFT, JNJ, ABBV, MCD, SBUX... etc etc... good luck to all!

[yuramelnichenko]

Yeah, let's not look up when he was wrong though, or mention it, as it might break the narrative