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MICHAEL BURRY WARNING:
First, he mentions that - as of now, more than 13% of stocks closed above their 200-day-moving average … and, generally…the ABSOLUTE stock market bottom occurs when that number is below 5%.
Second, he mentions that there are currently 218 companies worth more than $1 billion dollars…that LOSE $100 MILLION DOLLARS PER YEAR…and, 29 companies with more than a $10 billion dollar market cap…which, still can’t turn a profit. As he says…”all the silliness must go."
Third, he points out that “Inflation appears in spikes. It resolves, fools people, and then it comes back” - with a chart, showing that - since the 1940’s - inflation never just occurred once, and then disappeared. In every circumstance through today - inflation will decline…people will celebrate by spending more money…and, THEN - inflation will re-appear for as long as a decade…all because of:
Fourth, the Velocity Of Money. This tracks how often each dollar is ACTUALLY SPENT - and THEN - how often that money circulates back within the economy. Because of that, Michael Burry notes that - despite the Federal Reserve taking money OUT OF THE ECONOMY by rising rates - the average dollar is now being spent more frequently with a higher money velocity - and, because of that, inflation will CONTINUE to remain high.
However…there IS some good news, in the fact that - NOW could be the great opportunity to invest, because…THIS where the money is made.
In terms of the AVERAGE bull market…if we DON’T include drops of less than 20%, the average bull market has lasted a whopping 9.1 years with a cumulative return of 476%.
And if we INCLUDE drops of LESS than 20%, which are more like minor hiccups along the way…the AVERAGE Bull Market still lasts an average of 4 year, with a cumulative return of 129%.
So, just given this context...even though, on average, bull markets do last longer than bear markets…history has shown us that volatility is extremely common, and seeing drops or gains of 20% in either direction isn’t as extreme as you would think.
Now, in terms of what Michael Burry is doing - he believes that “Free Cash Flow is totally on sale and ignored while former momentum stocks are coming down but not far enough. Value was about to take off for years despite more crash on the way” - suggesting that boring, staple, and profitable businesses will be the ones that outperform in the short term.
That’s why, I believe, it’s best to be cautious in a market like this and prepare for the worst…but also - don’t tailor your investment strategy to a plan that may, or may not happen. Just from what I’ve seen… too many people have lost MORE MONEY planning for “the inevitable crash” than those who keep buying on a regular basis, regardless of how the market trades..and, long term, that will continue to be my plan.
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By Stock Chat

where the coffee is hot and so is the chat

26 thoughts on “It started: the worst market collapse in 50 years michael burry”
  1. Avataaar/Circle Created with python_avatars Jon Henry Wave says:

    If You're saying the stock market makes no sense, we're f****d!

  2. Avataaar/Circle Created with python_avatars Ricky S says:

    I’m honestly done with all these videos. The exhausting click bait literally every video is “the world is ending”……

  3. Avataaar/Circle Created with python_avatars Anton says:

    burry blocked me(

  4. Avataaar/Circle Created with python_avatars Slade Thornburg says:

    why tf would any of us believe what the banks and media says? Of course they're going to say stocks are going up, they want to steal more of our money. Id rather believe Burry, because that guy is crazy smart and out played dozens of banks countless times, if anyone knows whats coming, Burry does, not Morgan Stanley

  5. Avataaar/Circle Created with python_avatars flyingpigmonkey1 says:

    I think those graphs are misleading

  6. Avataaar/Circle Created with python_avatars Moxon says:

    Who taught you how to shave? I can't imagine what that process looks like for you to get that result.
    Are u using sheep shears?

  7. Avataaar/Circle Created with python_avatars Scott Bandy says:

    You just referenced Legend?! Such an underrated movie (with a young Tom cruise). Andrei now has competition!!

  8. Avataaar/Circle Created with python_avatars Norby says:

    What’s up Graham it’s guys here

  9. Avataaar/Circle Created with python_avatars Robert Laird says:

    I'm glad I didn't follow your advice to get into cryptocurrency. You wanted me to sign up with your friend that had some secret computer program that was supposed to make me millions. cryptocurrency is going to zero soon and has already crashed hard. Your just trying to make an extra buck off of your subscribers. I quit following you or listening to your videos because of it. Your pushy and only care about yourself.

  10. Avataaar/Circle Created with python_avatars John Smith says:

    Just for your information: your thank you pictures get you my likes early…. before I forget that liking a video helps you out. BOOM, you're welcome.

  11. Avataaar/Circle Created with python_avatars MJM FOX says:

    riddle me this!!!! What is the difference between 🐔 Little and a republican!!??? Chicken Little believed what he said. Republicans are fat out lying.

  12. Avataaar/Circle Created with python_avatars Ben Pielstick says:

    Acting is just professional pretending.

  13. Avataaar/Circle Created with python_avatars Motivational Motivations says:

    I love your Content. But your thumbnails are alot of times click Bait.

  14. Avataaar/Circle Created with python_avatars MJM FOX says:

    WTF DUDE!!! You are a republican agent.

  15. Avataaar/Circle Created with python_avatars Robert Cernansky says:

    I would like to remind everyone that due to the asymetric nature of stock market investing, after a 100% bull market return only a 50% bear market loss results in the same initial investment. So do not get fooled by the larger bull market numbers – they do need to outperform much more.

  16. Avataaar/Circle Created with python_avatars Christian D. says:

    Graham is the Ben Shapiro of finances.

  17. Avataaar/Circle Created with python_avatars Mid-Class VS Sup-Rich says:

    Short sellers + ppl overreacting = opportunities for investors. Patience + F.O.M.O + buy back companies = profits for investors. Direxion ETFs that's how I roll.

  18. Avataaar/Circle Created with python_avatars Professional Bird Watcher says:

    Used car salesman

  19. Avataaar/Circle Created with python_avatars jawed says:

    video this stuff good is

  20. Avataaar/Circle Created with python_avatars Keiv says:

    Aren't you bored making same videos again and again? I am bored watching this warning videos now. Make something interesting and new

  21. Avataaar/Circle Created with python_avatars The New Way Home says:

    Excellent insight as always, Graham! This is what every investor needs. Great work!

  22. Avataaar/Circle Created with python_avatars Schnooklebear71 says:

    The Scottish lord thing is dum

  23. Avataaar/Circle Created with python_avatars joeashbubemma says:

    If you bought at the peak, it won't take you years to break even, the market doesn't even have to get back to the same highs. You just have to hedge those positions on the way down so when the market goes back up, you can reduce those peak positions using the equity on shares bought at the lower positions. You don't have to trade options, but you do have to be vigilant. No one cares more about you money than you. I relied on a broker who lump summed a ton of cash at the top and now I'm left holding the bag. The learning curve is awesome, this bear market is forcing me to invest wisely.

  24. Avataaar/Circle Created with python_avatars Ivan Diaz says:

    Same headline every day take a few days off man

  25. Avataaar/Circle Created with python_avatars Steve P says:

    It's ok we can just blame Trump for it

  26. Avataaar/Circle Created with python_avatars 6 - 0 says:

    anyone disagree that btc will inevitably go back up before i invest all this money 😂

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