Michael Burry, the legendary trader who became famous for shorting the subprime mortgage bubble in the movie “The Big Short”, admitted on Twitter on Thursday (30th) that he had misjudged the situation, and congratulated investors who bought on dips for pushing the stock market over its expected level.
Berry has been bearish on US stocks for a long time since last year, believing that the performance of the stock market is quite similar to the trend of the great short in 2008, and expressed doubts about the rebound of US stocks. He predicted in January that the US government’s stimulus measures would lead to another surge in inflation, said the US was already in a recession by any standard, and suggested investors were “selling” stocks.
However, Berry tweeted on Thursday: “I was wrong when I said ‘sell’.”
He then added: “A BTFD (Buy the F*cking Dips) generation like yours is unprecedented.” He also shared a chart depicting the average return of the S&P 500 after a downturn.
Bulls celebrated the advent of new money printing when the Federal Reserve announced the Bank Term Funding Program (BTFP) to provide additional liquidity following the collapse of Silicon Valley Bank.
Citi strategists Jabaz Mathai, Jason Williams and Alejandra Vazquez Plata believe: “Another name for the new BTFP instrument is quantitative easing (QE), and the assets on the Fed’s balance sheet will increase.”
Arthur Hayes, co-founder of BitMEX, called on investors to take advantage of the trend to buy, calling the US central bank’s BTFP a repackaged yield curve control and quantitative easing policy.
Berry tweeted on March 12 that 2000, 2008, 2023 will all be the same. Arrogant and greedy people take stupid risks, fail, and then print a lot of money because it works well, suggesting that Silicon Valley’s banking crisis will soon be solved.
