Michael Burry, a well-renowned investor, is now foreseeing another large stock market crash.
He predicted the last housing collapse and he foresaw the SPAC collapse of 2022.
He recently predicted the crypto crash, and now he's so bearish about the stock market and the economy that he just came out with a tweet saying “you have no idea how short I am”.
Michael Burry And His Predictions
Michael James Burry is an American investor, hedge fund manager, and physician. He is most well-known for his accurate predictions of the 2007-2008 stock market crash.
Burry was one of the few people who foresaw the collapse and made a fortune betting against the market. While others were losing their shirts, Burry was making millions.
Burry's success in predicting the stock market crash made him a celebrity in the investment world. He was featured in several news articles and even appeared on the cover of Forbes magazine. His story was made into a movie called The Big Short, which tells the story of how he and a few other investors predicted the crash and made a fortune betting against the market.
What Could Happen If There Is Another Stock Market Crash
If there is another stock market crash, will likely mean big trouble for the real economy.
For example, if the stock market crashes again, it could cause people to lose confidence in the stock market and in the economy as a whole. This could lead to a decrease in spending and investment, which could further weaken the economy. Additionally, a stock market crash could lead to higher unemployment and inflation rates.
Michael Burry certainly knows a thing or two about predicting market crashes. If another one does happen, Burry will likely be one of the first people to know and capitalize on it.
How to Protect Your Investments From A Crash
- Make sure you're diversified. Consider a diversified basket of commodity producers over the next decade as many macro investors are predicting a new commodity super cycle.
- Don't put all your eggs in one basket. Position-size accordingly. Consider George Gammon's 10/80/10 investment strategy.
- Stay informed about what's going on in the market. Rebel Capitalist Pro is a fantastic resource for investors who choose to stay informed.
- Consider selling your speculative growth stocks. There is a rotation from growth stocks to value stocks occurring. Heavily levered growth stocks, like meta, google, and amazon, will continue to take a beating.
- Have a solid investment plan and stick to it. Learn how to buy cheap and sell expensive. Learn how to diversify and position size accordingly. Rebel Capitalist Pro can help you with this.
- Don't panic if the stock market crashes. What constitutes a crash for you, 10%, 20%? Every investor is different. We can agree that indexes move up and down. Make sure you are invested in financially sound companies.
- Remember that stock market crashes are a natural part of the economy. Fortunes are often made during recessions. Buying great companies at below market value is how you get in at the bottom.