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Tue, June 6 at 7:00PM ET

Stock Market Crash Alert: Michael Burry Says We Haven’t Hit the Bottom

  • Many investors are wondering if markets have hit rock bottom.
  • According to Michael Burry, the answer is no.
  • The legendary investor foresees more difficult times ahead.
An investor stands before a digital stock chart with a crashing red line.
Source: Shutterstock

For months, a question has loomed as to just how far the markets can fall. Between escalating geopolitical tensions and rising inflation, the macroeconomic headwinds have been significant. Recently, the Federal Reserve opted to raise interest rates yet again, leading to an even more bleak financial landscape.

As InvestorPlace’s Shrey Dua recently reported, the housing market crash will also likely to get worse in 2023. When these types of trends start making headlines, it’s hard not to wonder if a stock market crash is coming — and if so, can it be avoided?

One market expert just weighed in on the topic. Michael Burry thinks markets have even further to fall.

Michael Burry on the Stock Market Crash

Burry is famous for his prediction of the 2008 housing market collapse, which became the subject of book and film The Big Short. Since then, though, he has been busy with plenty of his own investments, including water stocks. The legendary investor has also deleted his Twitter (NYSE:TWTR) account multiple times. Currently, though, he’s back on the platform.

Earlier today, Burry addressed an important question about the state of the market:

This isn’t Burry’s first grim tweet about financial markets lately. Just yesterday, he listed several crashes in his signature cryptic style, noting the recent crypto, meme stock and special purpose acquisition company (SPAC) downfalls. Burry seemed to be highlighting an unfortunate trend.

Essentially, the legendary investor is implying that another crash is already underway; he clarified in today’s tweet that he sees markets falling even more. These posts are in line with Burry’s usual bearish attitude for 2022. Bloomberg reports:

“Warnings from Burry about coming turmoil have become common on Twitter this year, with the founder of Scion Asset Management predicting consumer spending and silliness in markets will cause trouble for investors.”

Whenever markets turn bearish, Michael Burry is a name that investors turn to — and for good reason. Per InvestorPlace’s Luke Lango, the legendary investor has an unrivaled record for finding opportunities in bear markets. But it’s important to note that, during the summer, Burry actually also turned bullish toward growth stocks. He thought they would rise in the second half of the year due to disinflation. Lango notes:

“[Burry has] called for disinflation and a dovish Fed policy pivot over the next six months. If he’s right — and we think he will be proven right yet again — then growth stocks are due for an enormous, face-melting rally into the end of the year.”

There’s still time for growth stocks to turn around and start rising again. Still, Burry did recently unload all but one stock from his personal portfolio. Clearly, he isn’t bullish on the high-growth part of the tech sector, having now sold both Alphabet (NASDAQ:GOOGGOOGL) and Meta Platforms (NASDAQ:META).

Burry seems more convinced than ever that markets will fall even further before the stock market crash is over. Investors should follow his instructions and watch carefully for further failures to know when things have finally hit rock bottom.

On the date of publication, Samuel O’Brient did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the Publishing Guidelines.

Samuel O’Brient has been covering financial markets and analyzing economic policy for three-plus years. His areas of expertise involve electric vehicle (EV) stocks, green energy and NFTs. O’Brient loves helping everyone understand the complexities of economics. He is ranked in the top 15% of stock pickers on TipRanks.

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