Withdrawal of 'Sell' Tweet After 2 Months
"A Generation Truly Committed to Buy the Dip"
Michael Burry, CEO of Scion Asset Management and the real-life model for the movie 'The Big Short' who predicted the 2008 financial crisis, has admitted that his view was wrong.
On the 30th (local time), Burry posted on his Twitter account, "It was my mistake to say sell," adding, "There has never been a generation as sincere about 'Buy the dip' as you since the 1920s. Congratulations." 'Buy the dip' refers to a strategy of purchasing additional stocks during a market downturn to maximize profits during a subsequent uptrend.
This admission of error by Burry came about two months after his initial stance. Earlier, on January 31, just before the Federal Open Market Committee (FOMC) meeting, he posted the word "sell" on Twitter, which was interpreted as a prediction of a market downturn.
Since 2021, Burry has consistently expressed concerns that the stock market could crash. In June of that year, he warned, "Before the mother of all collapses arrives, advertising and speculation are attracting retail investors." In May last year, he likened the U.S. stock market to an "airplane," predicting that the Federal Reserve's rapid interest rate hikes would burst the stock bubble.
However, the Nasdaq index did not decline but instead rose by 10.7% in January. Tech stocks, which have a large weighting in Nasdaq, also posted strong performances. Meta's stock price increased by 72.7% since the beginning of the year, while Apple (24.96%), Amazon (21.4%), Netflix (14.8%), and Google (14.4%) also delivered solid results.
Ultimately, Burry issued a sell recommendation at a time that was optimal for making profits. After the February FOMC, he suddenly deleted his Twitter account but later restored it, and by the end of March, he confessed that he had made a mistake.
Meanwhile, Burry is an investor who predicted the U.S. subprime mortgage crisis that triggered the 2008 global financial crisis and made a fortune by betting on the housing market downturn. His story was made into the 2015 movie 'The Big Short,' starring Christian Bale, which attracted public attention.
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