Dr. Michael J. Burry, a successful investor running his own Scion Asset Management, foresees a humongous bubble in the US stock market by the year-end. It would be the "greatest speculative bubble of all time in all things". The hedge fund manager also warned those who want to buy stocks at current lows about "the mother of all crashes."
He predicts that the collapse of Wall Street will follow after a 53% slump in the S&P 500. Even such a nosedive does not mean that the stocks would have bottomed out. Michael Burry sounded the alarm for the US equity market in the summer of 2021 and advised stock investors not to be overwhelmed by the ongoing rally on Wall Street. The expert cautioned that the stunning rally would end up in a severe downturn.
In May 2022, Michael Burry suggested that the S&P 500, viewed as a barometer of the stock market’s health, could plunge by a whopping 53% to 1,900 points in the next few years. The owner of Scion Asset Management points out that the overall sentiment in the stock market is bearish throughout 2022. For the time being, Wall Street is taking a breather on the way to the inevitable collapse, the investor reckons.
In August 2022, Michael Burry announced that he had sold almost all the US stock portfolio. Previously, he slashed US stock holdings in Q2 2022. As of now, the volume of US stocks managed by his investment firm does not exceed $3.3 million. The expert believes that the boom on Wall Street has come to an end. He also said that investors should not bet on significant growth in US stocks, though he did not rule out a modest short-term rebound.
