Tag Archives: Michael Burry

Michael ‘Big Short’ Burry Blasts “Unjustifiable” Lockdowns As “Most Devastating Economic Force In History”, by Tyler Durden

Looks like SLL isn’t the only one out there who thinks the coronavirus cure will be far worse than the disease. From Tyler Durden at zerohedge.com:

Infamous for his painful but ultimately profitable “big short” bet against mortgage-backed securities during the 2008 financial crisis, Michael Burry, the doctor-turned-hedge-fund-manager has been on a multi-day Twitter rant claiming that the lockdowns intended to contain the COVID-19 pandemic are worse than the disease itself.

Echoing the thoughts of many, Burry opined in a series of tweets over the past two weeks that the government-enforced lockdowns and business shutdowns across America may trigger one of the country’s deepest-ever economic contractions, and further still, are not necessary to contain the epidemic (on March 22nd).

COVID-19 policy cannot be settled by CYA politicians career ID docs. Too much hammer/nail and too little common sense. 

POTUS must reflect the interests of the working class and small business here – the economy cannot crash 30% to save the 0.2%.

Set America Free!

If COVID-19 testing were universal, the fatality rate would be less than 0.2%.

This is no justication for sweeping government policies, lacking any and all nuance, that destroy the lives, jobs, and businesses of the other 99.8%.

Continue reading→

If Michael Burry Is Right, Here Is How To Trade The Coming Index Fund Disaster, by Tyler Durden

Michael Burry was one of the heroes of Michael Lewis’s book The Big Short. Now he’s got another big short. From Tyler Durden at zerohedge.com:

Last week, the Big Short’s Michael Burry sparked a fresh wave of outrage among the Gen-Z and algo traders (if not so much the handful of humans who have actually witnessed a bear market) on Wall Street, by calling the darling of modern capital markets – passive, or index/ETF, investing – the next CDO bubble. Echoing what many skeptics before him have said, Burry argued that record passive inflows, coupled with active fund outflows which suggest passive equity funds will surpass active by 2022 according to BofA…

… are distorting prices for stocks and bonds in much the same way that CDOs did for subprime mortgages. Eventually, the flows will reverse at some point, and when they do, “it will be ugly.”

This nascent passive bubble is also why Burry had avoided large caps and was focusing entirely on small-cap value stocks: to Burry, they tend to be underrepresented in index funds, or left out entirely, which is why they are i) cheap and also why ii) when the passive bubble bursts, they will be the few names left standing.

Continue reading→