Michael Burry, renowned for his successful predictions, including the subprime mortgage crisis of 2007-2008, recently made headlines for his bearish predictions on the U.S. economy. Burry had been warning for months of an impending “extended multi-year recession” and sold all of his stocks, except for one, in August 2022. However, in a surprising turn of events, Burry took to Twitter on Thursday to admit his mistake, telling his 1.4 million followers that he was wrong to advise selling. Burry’s tweet has caught the attention of investors and analysts alike, with many speculating on the impact of his reversal on the market.
Michael Burry: “I was wrong to say sell”
Michael Burry, a prominent investor known for his accurate predictions, rose to fame for his successful forecast of the subprime mortgage crisis of 2007-2008. His unconventional investment strategies were chronicled in Michael Lewis’ book and movie, “The Big Short.”
In recent times, Burry has been bearish again, warning of an impending “extended multi-year recession” in the U.S. economy since December. In May 2022, Burry issued a warning that the U.S. could experience a “consumer recession,” and in August, his firm, Scion Asset Management, sold all of its stocks except one, including long positions in companies like Alphabet, Cigna Corp., Bristol-Myers Squibb, and Meta. Burry’s predictions continued in January when he stated that the U.S. was heading towards a recession “by any definition,” and in March, he likened the banking turmoil in the U.S. to the Panic of 1907. However, in a recent series of tweets on March 30, the famed investor appears to be changing his tune.
Furthermore, Burry recently tweeted that he was wrong to recommend selling. “Going back to the 1920s, there has been no BTFD (Buy The F***ing Dip) generation like you. Congratulations,” Burry added in another tweet. However, Burry’s previous tweets before March 30, 2023, have been deleted, as he has been accused of deleting tweets or resetting his Twitter account on several occasions. @mikeburrysaved, a Twitter account that shares Burry’s deleted tweets, has been created, and there are multiple archives available that cover his tweets and Twitter feed from the past few years. Burry’s latest statements on March 30 have sparked various responses, with one individual tweeting in disbelief, “You gotta be kidding me.”
Burry’s recent tweet, in which he praised the current “Buy The F***ing Dip” generation, has sparked a range of responses from Twitter users. One individual responded to Burry’s comment by stating that the US dollar is worthless and asked what people are expected to do in such a situation. Another person pointed out that the current generation may feel the economic pain on the way down in a unique way.
Burry is not the only well-known figure predicting an economic downturn. Economist Peter Schiff and Robert Kiyosaki, the best-selling author of “Rich Dad Poor Dad,” have also made similar predictions about an impending economic calamity.
