Michael Michael Burry, the archetypal character of the movie "the Big short", posted a series of tweets over the weekend warning that the US stock market was in jeopardy, accusing the Fed of misleading investors and vowing to stay away from big US technology companies.
Burley posted a link to a recent research paper that found that for every dollar invested in the US stock market, the market capitalization rose by $5. He points out that most millennials use passive investment instruments such as index funds to buy stocks, and that "the 5:1 ratio will eventually become more stupid", adding that the imbalance is "the product of a paradigm". This paradigm may continue or be reversed.
"this is at the edge of the razor, because our current ratio is 5:1, which could reach 100, or become-5," Burley said. But the parabola does not decompose horizontally.
Mr Burley also attacked the Fed's downplaying of the threat of inflation. He made special reference to a recent article. The article points out that Federal Reserve Chairman Colin Powell recently cited a more favorable inflation indicator from the Fed rather than another, which had much higher inflation figures and did not decline between July and August.
"so, Fed, are you lying to us, or are you lying to us?" Burley wrote.
In addition, Mr. Burley noted that two Fed officials had recently met with strong opposition to trading shares, prompting them to commit to selling their holdings. He points out that if they cash out now, they may make a considerable return on their investment.
"it's a great time to use moral protests to force Fed governors to sell stocks," he said sarcastically. It's wonderful. "
Berry also added # boycott Amazon.Com Inc to one of his tweetsAnd # boycott Facebook IncUrging his fans to stop buying products and services from leading technology companies in the United States. "boycott big technology companies," he said. Whether it's a little or a lot, please do this. For the health of you and others. " But then the tweet was deleted.
Mr Burley had previously warned that the US stock market was grossly overvalued and that a big crash, the "mother of all crashes", was imminent. He also refuted the surroundings around Tesla, Inc..The fanaticism of Cathy Wood's Ark investment, Bitcoin and other cryptocurrencies, and Mim stocks as suffocating hype and speculation.