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'Big Short' Hero Michael Burry Back After Failed Bearish Call, Here's His New Outlook

Wed, 02/08/2023 - 09:52
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Gamza Khanzadaev
Michael Burry is back with new opinion despite deleting his account after previous one
'Big Short' Hero Michael Burry Back After Failed Bearish Call, Here's His New Outlook
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Prominent analyst and hedge fund manager Michael Burry is back in the public eye with a new opinion on the financial markets. As a reminder, after the last rather bearish forecast a week ago, the market moved to the upside and Burry deleted his Twitter account.

'Big Short' Hero Michael Burry Deletes His Twitter Account After Posting Cryptic Market Prediction

Has Michael Burry become a bull?

Now, the investor, who has returned to the media field, stated that this time things are different. Burry's words might seem like a change of heart, but an examination of the attached chart suggests that this is hardly an amendment to his previous call to sell everything.

The graph offered by Burry for public viewing shows a comparison of the Effective Federal Funds Rate and the S&P 500 Index in 2001 and 2002. It can be seen that the decline in the effective interest rate index is paralleled by a decline in the stock market index. Thus, Burry makes it clear that when the U.S. Federal Reserve begins to pivot its monetary policy, one should not expect financial markets, and cryptocurrency in particular, to rise in the medium term.

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Thus, while the markets are behaving contrary to Burry's predictions so far, as they did in the late 2000s, this is only a short-term picture so far. Time will again tell who is right over the longer term.

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About the author

Financial analyst, trader and crypto enthusiast.

Gamza graduated with a degree in finance and credit with a specialization in securities and financial derivatives. He then also completed a master's program in banking and asset management.

He wants to have a hand in covering economic and fintech topics, as well as educate more people about cryptocurrencies and blockchain.