After a nearly three-month hiatus from social media, American investor and hedge fund manager Michael Burry sent a warning about the bursting of what he says is the biggest market bubble.
Burry previously said current hype on meme stocks and cryptocurrencies was similar to that before the bursting of the dot.com and housing bubbles in the mid-2000s. In his latest post, Burry said speculation has worsened since he decided to distance himself from social media.
People always ask me what is going on in the markets. It is simple. Greatest Speculative Bubble of All Time in All Things. By two orders of magnitude. #FlyingPigs360 — Cassandra (@michaeljburry) June 15, 2021
The hashtag at the end of his post was a reference to a famous investment quote, which says "Bulls make money, bears make money, but pigs get slaughtered."
Burry deactivated his Twitter profile in early April after he warned investors of a possible dip in the value of stocks such as Tesla, Gamestop, Robinhood. He also warned that the overvaluation of cryptocurrencies and SPACs would not end well.
Burry repeatedly said investors are becoming too greedy and shouldering too much risk in an attempt to chase unrealistic returns. Earlier in the year, Burry said the stock market was already "dancing on a knife's edge" and it would only be a matter of time before another financial crisis would hit.
This isn't the first time Burry's warnings have been largely discounted, which could be a big mistake given his track record. Burry is best known for his multi-billion dollar bet against the U.S. housing bubble, which cemented his reputation amongst investors.
His massive gamble was immortalized in the book "The Big Short" and the movie of the same title, where he was played by American actor Christian Bale. Burry was also instrumental in the recent GameStop stock rally earlier in the year.
Burry created a new Twitter account with the username "Cassandra." The username is a reference to a priestess from Greek mythology, who was cursed with the power to see the future but never to be believed by the people.
