If you watched the film, The Big Short, then you know or have heard of Michael Burry. To provide a simple recap of Burry, he is the one who bet against everyone else in the Great Financial Crisis in 2009. Now, remember that he was a bit early but did quite well as the markets went down.
So why are we talking about him right now, and why do we care that Burry deleted his tweets?
See, he was warning about Robinhood, Gamestop, bitcoin, and even the much loved Tesla for a while. He has said quite a bit of warning over the past couple of months and has since gone dark.
Now, I do not know about you, but when I see that someone who got the Great Financial Crisis right and managed his assets correctly start to act in the same manner around twelve years later, I start to pay attention. He has been saying that there are several problems within the economy, the stock market, and various parts of the world at the present moment.
It is essential to note here that Burry has been known to take a break from Twitter from time to time. At the same time, he never says, “You know my position now, no need to hear more from me”, in Vietnamese.
That is less than cryptic and reveals that he is looking to take a break from it all, make his moves and sit out of the media space for a while.
Should You Take a Few Cues from Burry the Scion Asset Management Boss?
If you look at Burry’s Twitter timeline, you will only find content about restaurants and bands.
What should you make of this recent action by an investing legend? Pay attention because a financial crash may be on the way—this a time of great frenzy and speculation in the markets. You have more zombie companies that cannot make their debt payments, let alone pay the interest, then general speculation on companies that have minimal value, ranging from Hertz to Gamestop.
At the same time, bond market investors are slowly selling off United States treasuries slowly but surely, this does not pose well for the U.S. and general confidence if bond markets start making moves such as slow but steady sales.
This is all during a time of unprecedented stimulus, rising unemployment in many parts of the world, more government dependence, and housing bubbles on a global scale. Watch your step out there as you dip into these financial waters. Remember that sharks are swimming, and they are ready to bite.