Michael Burry, who is best known for shorting the 2007 mortgage bond market, warned retail investors of losses worth “the size of countries” if prices of cryptocurrencies and meme stocks decline.
In a series of tweets on June 17, which have since been deleted, Burry cautioned traders about the “mother of all crashes”, Bloomberg reported.
Burry does have a habit of deleting his tweets, the report said.
“All hype/speculation is doing is drawing in retail before the mother of all crashes,” said the head of Scion Asset Management.
“When crypto falls from trillions, or meme stocks fall from tens of billions, #MainStreet losses will approach the size of countries. History ain’t changed,” he tweeted.
It is worth noting that Burry had taken a bullish stance on video-game retailer GameStop in 2019, a stock that saw a sharp rally driven by retail investors in January 2021. However, exchange filing showed that he sold his entire stake in December 2020 quarter, just ahead of the Reddit-fuelled rally which sent the stock soaring over 3000 percent.
In May, Burry’s Scion Asset Management reported a short position against Tesla worth more than half a billion. According to Burry, Telsa’s reliance on regulatory credits to generate profits is a red flag.
He is not the only one to warn about a crash in financial markets.
“Biggest bubble in world history getting bigger. Biggest crash in world history coming. Buying more gold and silver. Waiting for Bitcoin to drop to $24 k. Crashes best time to get rich. Take care,” he tweeted on June 19.
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