New stock market crash predicted
Star investor Burry sells (almost) all shares
08/17/2022 1:21 p.m
Michael Burry predicted the 2008 financial crisis. Now he is warning of another stock market crash and is radically reducing his share portfolio. He only keeps the shares in a single company.
The stock markets are rising, but stock market legend Michael Burry sees the current developments critically. The man who once predicted the stock market crash of 2008 sold almost all of his shares. These include Meta, the parent company of Facebook, Google’s parent company Alphabet and the online travel portal Booking.com, which he recently joined. Burry also sold shares in the healthcare sector, such as the pharmaceutical company Bristol-Myers Squibb and the healthcare provider Cigna. Only “Geo Group” remains. The US company operates private prisons and psychiatric facilities.
The sales stem from a mandatory filing by its investment company, Scion Asset Management, with the US Securities and Exchange Commission. The notification states the status of the investments as of June 30th. Accordingly, the investments were worth around 3.3 million US dollars at the time. Three months earlier it was still around 200 million US dollars.
Burry had recently expressed skepticism about the upswing on the stock market. In May he warned of a crash like 14 years ago and compared the situation to an impending plane crash. Since the tweet, the leading US index S&P 500 has increased by more than 9 percent and the tech index Nasdaq 100 by around 15 percent. Burry’s tweets have since been deleted, which is normal for him.
The investor is often referred to as the “Big Short Burry”. The background is his successful bet against the US real estate market shortly before its collapse in 2007. The story was later retold as a novel and filmed by Hollywood.