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“Big Short” investor Michael Burry said he will soon share his views about the bond market.
He also pointed out that ETFs tracking the S&P 500 and Nasdaq entered correction territory.
“I was right!” he boasted. “Does that mean they’re going to make another movie about me?”
Michael Burry said Thursday that he’ll soon share his views on the bond market and boasted that his prediction of a stock market correction had come true.
His spot-on bets against subprime mortgages were portrayed in “The Big Short” and earned him a massive investor following. Burry’s focus on the bond market comes amid a historic Treasury sell-off that has sent yields ripping higher.
“In a short time my views about bonds,” he announced in a now deleted post on X, formerly known as Twitter.
Whatever his outlook on bonds, markets have been eager for views on what’s happening and what to do next amid conflicting messages.
For example, billionaire investor Bill Ackman recently closed his profitable short bet against Treasury bonds, while top economist Mohamed El-Erian said investors are losing confidence in Treasurys as a safe-haven asset.
Meanwhile, investors are starting to balk at the growing supply of new Treasurys. This month, auctions of fresh US debt have been met with lackluster demand, pushing long-duration yields up into the 5% level
Burry also congratulated himself for an accurate stock market call. In July, he tweeted “maybe it’s time for a market correction” as his management fund Scion placed bearish equity bets against the SPDR S&P 500 ETF Trust and the Invesco QQQ ETF, which follows the tech-heavy Nasdaq 100.
On Thursday, Burry pointed out that’s exactly what happened: both ETFs fell into correction territory, declining at least 10% from their last highs.
“I was right!” he wrote, adding hours later: “Does that mean they’re going to make another movie about me?”
Burry regularly rings the alarm on stocks. In recent years, the Scion chief has warned of a massive bubble, and once suggested that the S&P 500 would bottom out at around 1,900 points.
But he recently admitted to making a mistake this year. In late January, Burry tweeted the word “sell,” ahead of a bull-market run.