Passive investments are inflating stock and bond prices in a similar way that collateralized debt obligations did for subprime mortgages more than 10 years ago, Burry told Bloomberg News."The theater keeps getting more crowded, but the exit door is the same as it always was. All this gets worse as you get into even less liquid equity and bond markets globally," he said.
Michael Burry attends the "The Big Short" New York premiere at Ziegfeld Theater on November 23, 2015 in New York City.
"Like most bubbles, the longer it goes on, the worse the crash will be," Burry said. "This is very much like the bubble in synthetic asset-backed CDOs before the Great Financial Crisis in that price-setting in that market was not done by fundamental security-level analysis, but by massive capital flows based on Nobel-approved models of risk that proved to be untrue."
Then why is he buying?
JWalkovik And so how does michael or others propose to short and profit from bursting of such a bubble?
Just like the force.... It's all around you
If someone puts money in S&P ETF, does the money go to stocks according to the weightage? If Yes then sure there is a big bubble it will blow only when liquidity runs dry, n it won’t anytime soon, coz of political parties. If not where does the money go if someone buysS&P ETF?
JimZarroli And what to do about it? 401k funds are locked into these things..
It all a % game people. Inflated Boomer housing issues, younger gen lower wages, not settling down & the mobility trend. Boom boom boom go the boomers.
Ditto
Hey, I know, maybe we can easily solve this issue by making VTI stocks weighted by market cap. Oh wait...
And the worst part is: I barely understood this
Juanchito55
Democratic presidential candidates
CNBC ... the network of zombie stories and tweets
hlywdwolfman
One hit wonder. NOTHINGBURGER!
OLD
This was published September 4th, 2019.
Fascist asset-freezing Trump is the next market bubble.
you guys love posting articles from 3 months ago
Eh....everywhere except commodities?
Slow news day? This article is from September?
Market has been up over a decade. However debt is up to record levels. Predicting a downturn doesn't make the goofball Nostradamus Jr. Predicting EXACTLY when the downturn will occur would add some credibility.
Every US financial asset market
LacyJohnsonMN
Didn’t he say that about 3 other things the last 10 years?
Really milking what happened 10 years ago
How’s the recession going?
09/04/2019
Yeah right. Savant who got lucky once is merely talking his book.
How many times you gunna post this ?
So the bubble is the market?
'The theater keeps getting more crowded, but the exit door is the same as it always was.' 🤔🤔🤔
The Market has only gone up recently Ignoring almost All warning signals....what could go wrong?
A Business Investment In People $1 Million Per Citizen Every 5 Years And Trillions Of Dollars Ideas Will Make It To School.. Innovation Will Come About As We Learn Market Standards.. Power Of Attorney To EdwardJones CharlesSchwab For Financial Guidance In Sustainable Necessity
I've thought ETFs are too dark for a long time. Low interest rates are going to come back to bite us big time.
is it equities? HOLY CRAP WHAT A GENIUS!!!! I SMELL A SEQUEL
Bitcoin
Everything?
Been writing about this for over 2 years. Published January of 2018 - good luck with your bond funds. You can’t provide immediate liquidity to anyone when your underlying collateral is frozen.
index funds... in other words, the entire stock market Bullshit
Straightline11 musabagudu FQProfessionals mynameis_Igwe
ETFs
post the jay-z tipping article again
Sorry, don’t think he will not get the trade of the life time twice.
The next market bubble is index funds and bond markets? WTF
Why is Sep article being posted again? Wanna make sure people believe in this bubble? 😁
the S&P?
We all did
It's only 60% of the market . Still a long way to go
He acted while most watched (including me) but that’s no qualification as a prophet.
Let passive investing crush and burn. No sympathy for joy riders.
In the 2008 crash, Michael Burry had been betting against the market for years before his bet paid off and it crashed. Please let us know in the years to come, when he takes a position betting against Index funds!
Singapore has been ‘hovering on a borderline recession.’ Some predict the crash around the corner in 2020 but Gov SG says ‘Business as Usual’ & signs new trade agreements to expand abroad in developing countries - ‘underdeveloped tbh’. Some sectors ok. Others, Brace yourselves!
Isn’t this the dude that also thinks Game Stop is a winning play? 🥴
Not saying he's right or wrong. But we too often associate investing skill with those who got it right once.
here's a market bubble any questions ?
The big question not asked or answered: Is he currently shorting the market? Ten years ago, he shorted for years, lost investors and finally the big payoff came.
so just BuY tHe DiP?
Do the opposite of what he tell you and you'll always win. This doctor is using reverse psychology.
Can someone explain in layman’s terms?
Well what would that be?
If company X perform well then the fund which hold company X stock in their portfolio perform well. Stocks and index's determine fund performance, not the other way around.
Wish there was a lot more explanation in this article
He’s wrong
This article may as well be written in ancient Aramaic. WHY ARE ETFS BAD?!?!?!
I start to understand this guy ...
🤦🏼♂️🤦🏼♂️🤦🏼♂️
This just in: money manager prefers active investing with higher fees to passive investing with lower fees.
buy everything!
He also owns a lot of TLRD how’s that been working out for him?
Our mission at is to build the social media platform that ends fake news
So let me guess. He’s shorting stocks and badmouthing them.
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