Noted “Big Short” investor Michael Burry tweeted Thursday, telling his 1.4 million followers that he was “wrong to say sell.” The tweet follows Burry’s decision several months ago to warn that the U.S. was headed for a “multi-year long recession” and to sell all but one stock in August 2022.
Burry: “It was a mistake to say sell”
Michael Burryknown on Twitter as “Cassandra B.C.” is well known for his predictions. He famously predicted and profited from the 2007-2008 subprime mortgage crisis. Barry’s unconventional investment strategy became famous when Michael Lewis featured his prediction of the 2008 financial crisis in his book and movie “The Big Short.” More recently, he has turned bearish again, predicting that the U.S. economy will stall in December, plunging the country into a “multi-year long recession.”
In May 2022, Barry warned that a “consumer recession” could hit the U.S. In August, his company, Scion Asset Management, sold all but one of its stocks. Scion sold long positions in companies such as Meta, Cigna, Alphabet (Google), and Bristol-Myers Squibb. In January, Barry said he expected the U.S. to fall into recession “by any definition,” and in March he compared the U.S. banking turmoil to the Panic of 1907. In his latest tweet on March 30, however, the prominent investor appears to be telling a different story.
“I was wrong to say sell,” Burrytweeted. “If you go back to the 1920s, there was no BTFD generation like yours. Congratulations,” the investor added in anothertweet.
Moreover,the legendary financierhas been accused
of deleting
tweetsand resetting his Twitter account on several occasions, so Burry’s tweets before March 30, 2023 have been erased.36} Twitter account is also available. There are also many archives covering his tweets and Twitter feeds over the past few years (#38), and there have been several reactions to Burry’s latest statement on March 30.” You gotta be kidding me,” one individualtweetedin response to Burry’s sales pitch.
In response to Burry’s “BTFD generation” remark, one individualsaid, “The dollar is worthless. What do [you] expect people to do? Anotherwrote to Burry, “Also, there may never be another generation that feels the same pain in a downturn like this.” The investor is not the only well-known entrepreneur predicting a recession. Economist Peter Schiff and Robert Kiyosaki, the famous author of the bestseller “Rich Dad, Poor Dad,” are also predicting economic disaster.
Do you think Michael Barry’s latest tweet signals a change in outlook on the economy or simply acknowledges the resilience of the “BTFD generation”? Let us know your thoughts in the comments section below.
Image credit: Shutterstock, Pixabay, Wiki Commons