Michael Burry, the hedge fund manager who successfully predicted the subprime mortgage meltdown and 2008/09 financial crisis, is issuing new warnings about market risks.
Burry, who runs Scion Asset Management and was featured in the book and film “The Big Short,” tweeted over the weekend about his concerns regarding inflation and the risks that he says are multiplying in the markets.
The investor voiced his concerns over risks in the markets by linking to a Wall Street Journal editorial that calls Rivian (NASDAQ:RIVN) “The Government Unicorn” because “we live in the age of free money and endless government subsidy.”
Burry tweeted: “More speculation than the 1920s. More overvaluation than the 1990s. More geopolitical and economic strife than the 1970s. Players grabbing the barrel of Kyle Rittenhouse’s rifle while @SECGov and @federalreserve nod approvingly.”
The money manager revisited the issue of inflation by noting that real inflation-adjusted wages are down since January 1.
“American real wages, adjusted for inflation, are down 2.2% since Jan 1. Seems the ONLY truly meaningful thing that’s down this manic, manic year. Inflation is a massively regressive tax. Never forget it,” tweeted Burry.
Last week, Burry tweeted about Tesla (NASDAQ:TSLA) as its chief executive officer (CEO) Elon Musk sold more than $5 billion worth of stock and helped to erase billions from the market value of that company.