- Michael Burry indicated that the stock-market collapse he predicted is now underway.
- The "Big Short" investor joked that his followers are still asking him when the crash is coming.
- Burry has suggested the S&P 500 could plummet by another 53% before bottoming out.
Doomsday is finally here, he hinted in a since-deleted tweet this week.
The fund manager of "The Big Short" fame shared a screenshot of a S&P 500 chart, showing the benchmark stock-market index has tumbled 18% from its December peak, despite several blistering rallies this year.
"And yet I keep getting asked 'wen crash?'" he tweeted, poking fun at some of his followers' poor spelling, and underlining his view that the market collapse is underway.
Burry suggested in May that the S&P 500 could drop as low as 1,900 points, or another 53%, over the next few years, based on how past crashes have played out. Moreover, he has dismissed the rebounds in stocks this year as bear-market rallies or "dead cat bounces" — temporary reprieves along the road to inevitable disaster.
The Scion Asset Management chief's stance seems to be that the market boom is over, stocks are headed downward, and any rallies will prove short-lived.
Jeremy Grantham, another doomsaying investor and market historian, also shrugged off the recent upturn in stocks as a bear market rally, in a new research note titled "Entering the Superbubble's Final Act."
Like Burry, he warned of an "unprecedentedly dangerous mix" of hugely overpriced assets, commodity-price shocks, and a Federal Reserve intent on curbing inflation by cooling the economy.
"Each cycle is different and unique — but every historical parallel suggests that the worst is yet to come," Grantham said.
Burry is best known for his starring role in "The Big Short," which chronicled his billion-dollar bet against the US housing bubble in the mid-2000s. He also bought a stake in GameStop before the video-game retailer became the ultimate meme stock, and bet against Elon Musk's Tesla and Cathie Wood's Ark Invest last year.
The investor set alarm bells ringing in August, when he revealed that he virtually liquidated his US stock portfolio in the second quarter of this year. Scion, which owned 11 stocks worth $165 million at the end of March, only held a $3.3 million position in a single stock three months later.