‘Big Short’ legend Michael Burry warns stocks will keep falling – and predicts many investors will suffer heavy losses

Michael Burry warned US stocks have further to fall, compared the current market downturn to the onset of the dot-com crash, and predicted many investors would suffer painful losses in a flurry of since-deleted tweets over the weekend.

The investor of “The Big Short” fame noted in a Friday tweet that there are 218 companies with a primary stock listing in the US, a market capitalization north of $1 billion, and annual losses exceeding $100 million. Of those, 29 boast market caps over $10 billion and are worth a combined $655 billion, he added.

“Saying it again. ALL the silliness must go,” Burry wrote. He was nodding to a tweet in August in which he complained that “COVID-era silliness” had returned to markets, and emphasized that such speculation had inflated past bubbles but eventually disappeared every time.

The Scion Asset Management boss pointed out in a Saturday tweet that 13.48% of US stocks closed above their 200-day moving average on Friday. That percentage was 1.2% when the market bottomed in 2009, and 2.8% in 2020, he noted.

“Currently at December 2007 levels,” he added, suggesting he expects stocks to drop significantly lower before bottoming out. Burry has previously suggested the S&P 500, which is already down about 25% this year, could plunge another 48% to around 1,900 points.

READ MORE HERE