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Hey, everyone! Today I want to inform you that the worst crash in decades is coming!
Does “The Big Short” ring a bell?
This film stars Michael Burry and tells how he walked away from the 2008 crash with millions of dollars for his investors and himself.
Why is this still significant 14 years later?
Michael Burry at Scion Capital has recently dropped all stock positions besides 1 company: Geo Group
Yes, Scion added 501,000 shares of a single stock in Geo Group.
Geo Group is a Florida-based company that operates 53 private prisons in the US.
They are 1 of the 2 Pure Play stocks that allow investors to speculate growth in this space.
Apparently Burry thinks that a lot of people are going to jail soon…
Michael Burry, a.k.a. Cassandra, tweeted more than a month ago…
“Net consumer credit balances are rising at record rates as consumers choose violence rather than cut back on spending in face of inflation.”
@michaeljburry, Twitter
He also attached a Bloomberg graph that shows an increase of $40.2 billion in consumer borrowing from the prior month (2nd largest increase ever).
Instead of saving money, consumers are accumulating more credit card debt.
Additionally, the stimulus checks from covid encouraged people to keep spending money, not save it!
A few days ago, Burry tweeted…
And yet I keep getting asked “wen crash?”
He posted a chart of the S&P 500 since 2017, and today’s charts look dangerously similar!
Conclusion
According to Michael Burry, the worst crash in decades is coming.
People like Burry have predicted 20 of the last 4 crashes, meaning they’re usually wrong and then they’re right.
Will the market crash? Will people go to jail? We’ll see what happens!
That’s it for today!
Thanks,
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DISCLAIMER: This content is for educational and informational purposes only. It is not to be taken as tax, financial, or legal advice. You should always consult a legal professional before taking action. Furthermore, this is not a recommendation to buy or sell any security. The content is solely just the opinion of the authors.
