Michael Burry, a well-known analyst and hedge fund manager, has returned to the public spotlight with a fresh viewpoint on the financial markets. Recall that following the most recent, somewhat pessimistic prognosis, the market turned upward and Burry canceled his Twitter account.
Has Michael Burry Sided With the Bulls?
The investor, who is back in the media industry, said that things are different this time. Burry's remarks may appear to be a change of heart, but a close look at the chart in the attachment indicates that this is not really a modification of his earlier call to sell everything.
— Michael Burry Archive (@BurryArchive) February 7, 2023
The Effective Federal Funds Rate and the S&P 500 Index are contrasted in the graph Burry made available for public viewing in 2001 and 2002. It can be seen that the drop in the stock market index parallels the decline in the effective interest rate index. Burry thus demonstrates that when the U.S. Federal Reserve begins to pivot its monetary policy, one should not expect financial markets, and cryptocurrency in particular, to rise in the medium term.
Thus, while the markets are behaving contrary to Burry's predictions so far, as they did in the late 2000s, this is only a short-term picture so far. Time will again tell who is right over the longer term.
