Big Short 2008 Fame Michael Burry just sold all his holdings

Interesting. Wonder why he is that bearish ? is he a perma bear ? or is something big cooking which we are missing?

He is known to take super risky bets and as we have seen in the past, can get into the position early (years sometimes), So, tough to make out too much of this news currently.

Before the market crisis reflected on the stock market in 2008, there were indicators around which cried sell sell sell. But unaware of what was happening money kept pushing the market up and up until reality struck.

Looking around am bit wary of where market is. To me these market highs doesn’t make any sense. But then money can push markets anywhere.

I said something similar a week ago

1 Like

Just look at the monthly chart of index. yes all patterns can fail, but usually these kind of pullbacks can lead to decent drive up. We are in consolidation for almost a year now. All sorts of bearish news has been absorbed without much damage. There was a decent chance of new bearish pressure in June but markets just brushed it aside. Recent move is a bit stretched on daily, but on monthly the move has only just started out.

One of the turtle traders in a podcast had mentioned that best trend moves tend to happen when there is no clear explanation.
Anyway, in my case i am almost out of the market as money is in trading, but certainly not telling my family to dump investments.

Heard something big is cooking in China too with their real estate market. They have lowered interest rates. Has that got anything do too ?

These are big investors, we cannot possibly comprehend what exactly is the reason, if there is any. Also, with the kind of capital they have, they can afford to take losses if their bets don’t play off, and they can always find something to invest until what they envisaged happens, it could even be a simple treasury bills.

Even if Dr. Burry is correct, we cannot possibly imagine what kind of impact it would have on our investments, as the markets are interconnected there will be impact, but not sure how much of impact, so it is better to look at our investments and trades from our own perspective.

And as the financial world in its entirety has history, we find completely contradictory quotes from many.

Keynes - ‘Markets can remain irrational more than you can remain insolvent’.

Templeton - ‘I don’t know what markets do tomorrow’.

Lynch - ‘A lot of money is lost waiting for correction, than the correction itself’.

Buffett - ‘Buy when there is blood on the streets’.

Physics law - ‘What goes up must come down’.

And many more.

Investors, particularly investors who have been in the market for a while and who invest for longer periods, love such bear news, because they get good quality stocks for lesser prices. Traders who are more here in this forum may feel worried if their bets are big. I am both, so I look at it from two different perspectives. If there is an uptrend I find more trading opportunities, if markets are falling, I get opportunities to buy for long term.

I love both :ox: :bear:

every time i hear about turtle trader, I tend to cuss hard on michacel covel that guy wrote a book on turtle traders (The complete turtle trader) you’ve probably heard of it

the whole book was filler

*no offence to turtle trading, even I follow similar steps thanks to the legit book ( way of turtle by cutis faith)

1 Like

No one knows at what price he bought all these shares. he might have found some better options to invest in by selling his existing positions at huge profit.