- Michael Burry is an American Investor and physician famous for his near-prescient financial predictions.
- Burry became famous after making hundreds of millions of dollars in the 2007 – 2010 Subprime mortgage crisis.
- The Big Short predicted the current 2022 bear market as early as June 2021.
- He also predicted Gold’s impressive performance in 2022, as well as the second half of the 2022 crypto bear market.
According to the official Wikipedia article, Michael James Burry is an American investor, hedge fund manager, and Physician.
However, Burry, better known as “Big Short,” isn’t particularly famous for any of these things. Big Short is better known for his almost-prescient predictions regarding money and profitable investment options.
For instance, Burry is among the few investors to predict the 2007 – 2010 subprime mortgage crisis.
Burry made a fortune by swapping collateralized debt obligations (or CDOs) when he shorted the mortgage bond market in 2007. In doing this, Burry earned a profit of $100 million for himself and $700 million for his investors.
He closed Scion Capital in 2008 to concentrate on his investments. In 2011, he founded Scion Asset Management, a private investment company he still runs today with headquarters in Silicon Valley’s Saratoga, California.
Burry is one of the most famous investors in the American financial space. So much so that he was portrayed by actor Christian Bale in the oscar-winning 2015 film, The Big Short: Inside the Doomsday Machine.
In this article, we highlight some of the most notable predictions Burry, “the big short” has made concerning the financial markets over the last two years, arranged in chronological order.
1) 2021: Burry Predicts the “Mother of All Crashes” for Stocks and Cryptocurrencies
Not many people know that the current crypto was predicted by this same man as early as June 2021.
It is generally known that the crypto market follows the footsteps of the stock market.
In a series of deleted tweets on June 2021, Burry issued a strong warning to traders. In the tweet, he mentioned that crypto and stock market investors should not be swayed by fear of missing out (FOMO) while the market soared.
He mentioned that the issue with cryptocurrencies is the reckless borrowing investors use to get into some markets and that a pricing crisis might lead to another before a major crash.
According to Burry, the “incoming crypto crash” will likely affect the ‘main street.’ In his words, Hype and speculation only serve to increase retail sales prior to the “mother of all crashes.” The “size of countries” will also be affected when crypto prices drop by trillions or meme stocks drop by tens of billions.
True to Burry’s predictions, the crypto market cap has dropped from upwards of 3 trillion to far less than 1 trillion from November 2021 until date.
2) Burry 2022: The Second Phase of the Bitcoin and Stocks Crash
The 2022 bear market has been harsh on the crypto and stock market in the massive correction that followed Bitcoin’s $69,000 all-time high.
After a series of macroeconomic woes, inflation, rate hikes, and the Russo-Ukraine war, the crash in the year’s first half was minor compared to the crash in the second half.
According to a prediction made via a tweet by Burry, the second half of the crash would play out in the last 6 months of the year. The big short mentioned the massive corrections in the Nasdaq, Standard, and Poor Index (S&P 500), and Bitcoin prices and added that these corrections point to “multiple compressions.”
“Next Up,” he said, “is the earnings compression.” After adding that, the market should be “prepared” for more reds if these projections are realized.
3) Gold Is Likely to Rise Following the Dip in Crypto and Stocks
Just recently, in mid-November this year, Burry made another prediction concerning Gold. In the now-deleted tweet, Burry mentioned that Gold is likely to fill in the gap left by the crypto market crash, especially with the massive insolvency issues and scandals (the FTX crash, the Celcius Network Insolvency and the LUNA crash) now being exposed by the bear market.
Burry mentioned that these scandals would likely merge into a “contagion,” potentially making cryptocurrencies less attractive to investors and Gold a better investment choice.
— Michael Burry Archive (@BurryArchive) November 15, 2022
And just as Burry predicted, Gold’s performance has been impressive throughout the crypto (and stocks) bear market.
Disclaimer: Voice of crypto aims to deliver accurate and up-to-date information, but it will not be responsible for any missing facts or inaccurate information. Cryptocurrencies are highly volatile financial assets, so research and make your own financial decisions.