Rich Duprey
6 min read
Quick Read
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Burry posted that stocks are in the “denial” stage of grief, mirroring what happened in the 6 to 9 months before the 2000 and 2008 crashes.
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Of Burry’s 12 bearish calls, only 3 matched real declines, while the S&P 500 still gained as much as 281% from those warning points.
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Burry reversed his 2023 ‘Sell’ call just two months later and went long on Microsoft in April, making any single bearish post an unreliable guide.
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Just released. Our analysts combed the entire stock market and named the ten best stocks to buy right now, and Microsoft didn’t make the cut. Enter your email to see the names that beat MSFT. The report is free. Enter your email and see if any of your stocks made the cut.
Rising stocks can make caution feel expensive. Sell because trouble looks inevitable, and every subsequent gain becomes a reminder that protecting your money has an opportunity cost. Stay invested, however, and a sudden downturn can erase years of progress. The challenge is separating evidence that stocks are expensive from evidence that they are about to fall.
Those are different judgments, requiring different responses. Historically stretched valuations means elevated prices can threaten future returns without supplying a reliable sell date. For investors building wealth over decades, that matters more than any forecaster’s reputation.
Michael Burry’s Latest Stock Market Warning
Michael Burry is sounding the alarm again. The famed “Big Short” investor recently wrote on his Cassandra Unchained X account, “The stock market is quite obviously in its first stage of grief, denial. Per 2000 and 2008, this stage lasts 6-9 months.”
The comparison is ominous, but the statement supplies neither a downside target nor a starting date for that six-to-nine-month clock.
His chosen moniker fits his public role. In Greek mythology, Cassandra could foresee disaster but was cursed to not be believed. The catch: Cassandra’s prophecies were true. But market skepticism alone doesn’t make a forecast correct.
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Ignoring the ‘Big Short’ legend’s doom-and-gloom could have netted you 281% gains—here is why the latest ‘Cassandra’ call might be the most expensive distraction yet. © 24/7 Wall St.