'Big Short' investor Michael Burry warned against buying meme stocks and crypto and predicted the 'mother of all crashes' during his brief Twitter return. Here are the 10 best tweets.
- Michael Burry returned to Twitter for eight days after deleting his account in April.
- "The Big Short" investor rang the alarm on meme stocks, crypto, inflation, and the Federal Reserve.
- Burry also warned of an unprecedented market bubble and predicted the "mother of all crashes."
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Michael Burry returned to Twitter for eight days this month after deleting his account in early April. The investor of "The Big Short" fame issued dire warnings about meme stocks, cryptocurrencies, inflation, a wrongheaded Federal Reserve, a sprawling market bubble, and a historic crash before taking down his profile again this week.
The Scion Asset Management boss, who famously predicted the US housing-market collapse that precipitated the global financial crisis, has pointed to Tesla, Robinhood, dogecoin, GameStop, and SPACs as demonstrating signs of rampant speculation and dangerous excess in recent months.
Here are Burry's 10 best tweets from his brief Twitter homecoming:
1. "People always ask me what is going on in the markets. It is simple. Greatest Speculative Bubble of All Time in All Things. By two orders of magnitude. #FlyingPigs360."
2. "All hype/speculation is doing is drawing in retail before the mother of all crashes. #FOMO Parabolas don't resolve sideways; When crypto falls from trillions, or meme stocks fall from tens of billions, #MainStreet losses will approach the size of countries. History ain't changed."
3. "The problem with #Crypto, as in most things, is the leverage. If you don't know how much leverage is in crypto, you don't know anything about crypto, no matter how much else you think you know."
4. "Easiest riddle you'll ever get from me. What do Troy Polamalu and #Bitcoin have in common?" – "Neck not broken yet on either," he explained in a follow-up tweet about the former American football player with an enormous head of hair, and the leading cryptocurrency.
5. "Knowing saves half the battle. Got it? It's not hard. Analyze, think independently, be informed, find the data, and you'll know a lot that no one else does."
6. "Some stocks, funds cannot own, for now. Maybe 1x book, 1x sales. Growing fast. But, pink sheets, federal laws, clients in certain jurisdictions… some cases there is a path to funds gaining the ability to own such. Knowing saves half the battle, #capisce?" – underscoring the opportunity for investors to buy stocks now that institutions might own in the future.
7. "Re: RMBS CDS, ancient history, but… because my investors revolted, I was completely out of the trade before any bailouts. And I hated the bailouts too! AIG should have been allowed to fail, and @GoldmanSachs with it. Today's narratives would be very different." – commenting on the government bailouts of major banks and insurers during the financial crisis.
8. "Everywhere and anywhere you see #shortages – things, people, places, experiences, and services – you know the price is just not high enough, yet." – suggesting that a national ammo shortage is evidence of upward pressure on prices.
9. "Micro-hoarding. Millions and millions micro-hoarding. The secret to longevity… of the inflationary mindset. And since #PlungeProtectionTeam mentality infiltrated the Greenspan #Fed after the '87 crash, it has compounded and compounded. And become today's misguided monster." – accusing the Federal Reserve of fueling inflation by focusing too much on shoring up financial markets.
10. "Who could've seen this coming?" – Commenting on a news report that supply-chain disruptions, labor shortages, and a post-pandemic demand surge are stoking inflation. Burry flagged the risk of inflation spiking after the economy reopens as early as April 2020.