Are premonitions a thing?
Is there really a sign that could warn you about the Armageddon?
Do we potentially have writing on the wall that market watchers are too afraid to see?
If the last tweet by American hedge fund investor Michael Burry is any indication, it looks like the stock market is headed for a grim period.
Burry, who featured in Michael Lewis’ book “The Big Short” for correctly predicting that the housing market would crash in 2005, recently tweeted, “At least I tried.”
Actor Christian Bale, best known for the superhero franchise ‘Batman’, played Burry in the movie of the same name.
Burry, on of the first people to warn of an impending American housing market bubble, deleted his Twitter account soon after he posted this tweet.
To be fair, a lot of people are threatening to leave Twitter for completely different reasons, with Tesla (TSLA) – Get Tesla Inc Report Chief Executive Elon Musk is set to takeover the platform officially.
Burry, who runs Scion Asset Management, last week also tweeted that streaming giant Netflix (NFLX) – Get Netflix, Inc. Report might be headed for turbulence after the company reported its first decline in subscriber growth in the March quarter.
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“The competition came for Netflix just like the competition is coming for Tesla,” Burry tweeted.
TheStreet’s Michael Tedder reported that heightened competition in the streaming world is one of the main reason’s for loss of subscribers at Netflix.
Burry’s Past Investing Advice
Some of the other tweets by Burry cautioned his fans against investing in the world’s most traded cryptocurrency, bitcoin, in June 2021.
The price of bitcoin whipsawed briefly below $30,000 a day after Burry’s tweet.
Burry also sounded alarm bells for another market crash around the same time, adding that the so-called meme stock frenzy will eventually end badly.
“All hype/speculation is doing is drawing in retail before the mother of all crashes,” he wrote on micro blogging site Twitter.
Will Burry’s mental model spell doom accurately?
There’s only one way to find out.
But concerns about the Ukraine war, the recent Covid-19 outbreak in China, a lurking fear of either a U.S. or European recession, and rising global inflation are all being predicted as potential factors in upcoming economic turmoil.