Greatest Speculative Bubble Of All Time – Michael J. BurryFew days ago, he tweeted: “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”
We all know he is shorting Tesla… Elon tweeted Tesla has diamond hands…
It would be interesting having Travis analysis on this one as well as your comments and thoughts.
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In addition to shorting Tesla, Michael Burry has been sounding the alarm for several months now on hyperactivity in the following assets: Bitcoin, Dogecoin, Robinhood, SPACs, electric vehicles, software-as-a-service, GameStop, AMC and other meme stocks.
I’ve also heard that he has Tweets indicating he is not a fan of the Fed’s inflation-causing monetary measures.
It seems easy to say let’s just avoid all the above assets and move to proven value stocks or at least more stable assets to hedge ourselves against inflation or protect our portfolios from a broad market crash. Reality check is, when day and speculative traders have to cover their short positions during a sell-off in crypto and meme stocks, the rest of the market gets dragged down with them — including what longer-term investors consider “safe havens”.
Personally, I don’t hold crypto or meme stocks but such has not spared me from downtrends in gold, commodities, tech stocks associated with blockchain, etc. during major corrections. Yes, there are the trash collection and funeral services type of stocks but I would appreciate a much longer list of suggestions to help stabilize my portfolio if and when Michael Burry proves himself right once again.