‘Big Short’ Michael Burry warns there is no strategy to get out of this ‘real recession’
Renowned investor and hedge fund manager, Michael Burycommonly referred to as “The Big Short”, suggested that the economy is already in a recession while wondering about the best strategy to face the recession.
According to Burry, there is no tangible strategy for weathering the economic downturn while warning of a “prolonged multi-year recession,” he wrote in a now-deleted Nov. 30 post. Tweeter.
Interestingly, Burry, credited with successfully projecting the 2008 financial crisispreviously warned that the ongoing economic turmoil could worsen.
Prolonged bearish sentiment
In general, in recent months, Burry has remained bearish on the market, hint that the stock Exchange crash might be in progress. Notably, in 2021, Burry warned market participants not to get carried away by fear of running out or (FOMO), citing what he called overextension by retail traders.
It’s after the cryptocurrency market embarked on a bull run, with most assets setting records.
“When crypto drops trillions or meme stocks drop tens of billions, #MainStreet losses will approach the size of countries,” he said.
In this line, Burry underline that in the middle of the conditions, several assets like gold are likely to emerge in the lead as must-have investment products. The US investor said gold seems appropriate given recent cryptocurrency-related scandals, including the fallout from the FTX Exchange Collapse.
Indeed, the economy has been characterized by soaring inflation and interest rate hikes, with gold showing its resilience by meeting its expectations as an inflation hedge.
In the meantime, Bitcoin (BTC) remained mostly bearish, with the asset losing value by around 75% from its all-time high near $69,000. As it stands, Bitcoin is still consolidating below the $17,000 level, even though the stock market and crypto market are looking for a possible bottom.
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