Big Short's Michael Burry gives ominous one word order to investors

Big Short's Michael Burry gives ominous one word order to investors
UK economy set to shrink in 2023 in weakest performance among G7, …

Hedge fund manager Michael Burry has delivered a stark warning to investors, fuelling fears of a possible stock market crash in 2023.

Burry, who was played in The Big Short by Christian Bale, posted an ominous message on Twitter consisting of the single word “sell”.

It’s not much to go on, but it’s not the first time that Burry has predicted huge changes in the financial markets.

As brought to the screen in the 2015 movie, Burry preempted the collapse of the American housing market in 2007 which preceded the economic crash of 2008.

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It recounts how Burry identified the risk involved with the subprime market, which had enabled millions of lower earners to buy homes with huge leverage and often with no down payments. He predicted that when interest rates rose, they wouldn’t be able to afford them – and it would spark a crash.

Burry proceeded to bet against the housing market and eventually won millions of dollars for his investors. It’s understandable, then, that his new warning has sparked discussion.

He's given stark warnings about the economy in the recent past too. He warned his Twitter followers about the "greatest speculative bubble of all time in all things" in 2021, speculating that investors buying cryptocurrencies were headed towards the "mother of all crashes."

Burry isn’t the only one predicting another crash in 2023 either.

Burry was played by Christian Bale in The Big ShortAstrid Stawiarz/Getty Images

Universa Investments, which is advised by The Black Swan author Nassim Taleb, reportedly told investors recently that the economy was heading for another event which would resemble the 1929 crash leading to the Great Depression.

"It is objectively the greatest tinderbox-timebomb in financial history – greater than the late 1920s, and likely with similar market consequences," Universa's chief investment officer Mark Spitznagel reportedly said in the letter seen by Bloomberg.

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