Former hedge fund manager and “Big Short” fame investor Michael Burry is sounding off on the state of the market once again, with more warnings.
What Happened: Burry, who deletes his tweets days after they are posted, said on Wednesday: “Crypto crash. Check. Meme crash. Check. SPAC crash. Check. Inflation. Check. 2000. Check. 2008. Check. 2022. Check."
Why It Matters: Burry possibly meant that this year was showing shades of 2000 and 2008, two calendar years that faced noted corrections due to the bursting of bubbles in the dot-com and housing sectors, respectively.
The noted investor's most recent quarterly report showed that he sold positions in 12 stocks, including big tech names like Apple Inc (NASDAQ: NASDAQ:AAPL), Meta Platforms (NASDAQ: META) and Alphabet (NASDAQ:GOOGL) Inc (NASDAQ: GOOG)(NASDAQ: GOOGL).
The lone stock owned by Burry was Geo Group (NYSE: GEO).
In August, he tweeted: “Nasdaq now up 23% off its low. Congratulations, we now have the average bear market rally. Across 26 bear market rallies from 1929-1932 and 2000-2002, the average is 23%."
Related Link: Did The White House Just Change The Definition Of A Recession? Here's What Michael Burry Thinks
What’s Next? While some have said Burry has been too bearish this year, he thinks more pain is coming for investors.
“No, we have not hit bottom yet. Watch for failures, then look for the bottom,” Burry tweeted, noting that two SPAC ETFs have failed and liquidated.
Burry also took on inflation in a recent tweet, which could play into his bearish thesis for the market going forward.
“Inflation appears in spikes. When the spike is resolving, it won’t be because of Biden or Powell. It will be because that is the essence, the nature of inflation. It resolves, fools people and then comes back. When it comes back, neither the POTUS nor the Fed will take credit," he said.
The market has, so far, shown positive signs in the third quarter, following a strong first half, but investors could be in for a rude surprise if Burry's predictions come true.
Price Action: The SPDR S&P 500 ETF Trust (ARCA: SPY (NYSE:SPY)) is down 16.7% year-to-date in 2022. The ETF is up 5.4% in the third quarter, according to data from Benzinga Pro.
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