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Index Funds will Collapse: Michael Burry Prediction Explained


Michael Burry

As always, I explain Michael Burry's predictions simply and quickly.

Michael Burry is famous for being one of the few people to bet big on the housing market crash. Michael Burry is also famous for being portrayed on the hit movie “The Big Short.”

Now, Michael Burry is making another huge short bet. He’s predicting index funds and ETF’s will crash just like the housing market did 10 years ago.

Michael Burry goes so far as to say the current index fund market is similar to subprime CDO’s before housing bubble 1.0 crashed. This is really big news because Michael Burry is NOT someone that grants a lot of interviews. You’re not going to see him talking about his latest stock picks on CNBC.

He rarely talks to the media, so when Michael Burry speaks, people listen… AND SO SHOULD YOU!!

Index funds and ETF’s have become extremely popular.

Michael Burry points out that they have many features attractive to the average retail investor, low fees, no homework and supposedly, over the long run, you’ll beat all the active managers who charge all those fees for doing all the research.

It seems too good to be true, and according to Michael Burry, it is too good to be true. And honestly, to me that makes sense.

The ETF pitch you hear from ALL the “financial experts” on YouTube claims that ETF’s are mathematically superior and active managers are just trying to rip you off.

But if you listen to the ETF/Index fund pitch it sounds very similar to a get rich quick scheme or lose weight without exercise.

Basically, be as lazy as you want, just put your money here and in the long run, you’ll beat all the pro’s.

To me, it sounds like Michael Burry is exposing an infomercial!!

In this Michael Burry ETF video, you’ll discover:

  1. How ETF’s work.
  2. Michael Burry’s first concern (no price discovery creating a bubble).
  3. Michael Burry’s second concern (liquidity risk)
  4. Michael Burry’s third concern (derivative risk or counter party risk).
  5. Do I think you should buy ETF’s or Index Funds?