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The Big Short’s Michael Burry warns of “mother of all crashes” – sells all his shares

Michael Burry

American investor and hedge fund manager Michael Burry said the feared stock market crash is already underway and has sold all his shares – except one.

Burry is best known for predicting and profiting from the subprime mortgage crisis in the United States and was made famous by the 2015 film The Big Short.

In June 2021, Burry warned of the “greatest speculative bubble of all time in all things” and warned investors that the “mother of all crashes” was on the cards.

Earlier this year, he doubled down on his prediction and suggested that the S&P 500 could drop by more than 50% over the next few years.

He described the temporary rise in stock prices over the last few weeks as bear-market rallies and “dead cat bounces”, which will not stop the ultimate decline.

In a recent Twitter comment, he said the long-feared stock market crash is already underway.

He backed up his dire prediction by selling all his shares and only taking a stake in private prison operator Geo Group.

Burry’s U.S. Securities and Exchange Commission (SEC) filing revealed that he dumped its entire stock portfolio in the second quarter.

Some shares he sold include Google parent Alphabet, Facebook parent Meta, Bristol-Myers Squibb, Booking Holdings, and Ovintiv.

This decision aligns with his bearish outlook that the market crash will be worse than everyone expected.

Burry’s view contrasts with many other investors who argue that the worst of the bear market is behind us and that a bull market is imminent.

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