In yet another ominous prediction for the course of Wall Street, the mega-investor made famous by the movie “The Great Shorting” Michael Berry, claiming that a market crash has begun.
Earlier this year Michael Berry referred to the “foolishness” that has returned, saying markets are behaving irrationally once again.
Last year, he sounded the alarm about the “biggest speculative bubble of all” and warned investors they were headed for the “mother of all crashes.”
Which he now thinks is here, posting a chart of the S&P 500 that shows Wall Street’s major index is down 18% from its December high, despite some short-lived rallies into 2022.
“And they still keep asking me when the crash will happen,” he wrote in his Twitter post, which he deleted shortly after.
— Michael Burry Archive (@BurryArchive) August 31, 2022
In May, Berry argued that the S&P 500 in the coming years could fall as much as 1,900 points, or as much as 53%, based on the course of past crashes.
At the same time, he rejects any recovery movements in stocks that appear this year as bear rally markets or “dead cat bounces”, i.e. short breaks on the road to inevitable destruction.
Michael Berry has become known as the man who predicted the global financial crisis of 2008, as depicted in Michael Lewis’s book The Great Shorting, which was later made into a blockbuster movie.
In fact, he had taken a short position in the until then powerful US mortgage market, considering it to be a bubble. Berry was vindicated, reaping great rewards, and has since gained a reputation as a prophet of bad news, something he seems to accept with his chosen twitter handle (“Cassandra BC”).
Continuing in the same direction since then, he is used to looking for overvalued assets and last year he attracted attention by repeatedly shorting Elon Musk’s Tesla stock for more than half a billion dollars, while he also placed big bets on Cathy Wood’s famous technology ETF Ark Innovation.
I am Sophia william, author of World Stock Market. I have a degree in journalism from the University of Missouri and I have worked as a reporter for several news websites. I have a passion for writing and informing people about the latest news and events happening in the world. I strive to be accurate and unbiased in my reporting, and I hope to provide readers with valuable information that they can use to make informed decisions.