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  3. /‘Big Short’ investor Michael Perry compares the market slowdown to a plane crash — and hints that plummeting stocks and home sales remind him of the housing bubble burst

‘Big Short’ investor Michael Perry compares the market slowdown to a plane crash — and hints that plummeting stocks and home sales remind him of the housing bubble burst

Markets / May 26, 2022 / DRPhillF / 0

Michael Bury.Astrid Stowers/Getty Images

  • Michael Perry has hinted that plunging stocks and plunging home sales remind him of the 2008 housing depression.

  • The Big Short investor said watching the current market is like watching a plane crash.

  • Perry, who has warned that asset prices will collapse, said he was not happy to be right.

Falling stocks and sluggish home sales are reminiscent of the collapse of the housing bubble in the mid-2000s, investor in the fame of “The Big Short” hinted at deleted now Tweet on Tuesday.

“Like I said in 2008, it’s like watching a plane crash,” he said. “It hurts, it’s not fun, and I’m not smiling.”

Bury told New York Magazine in December 2015 that with the housing market crash in late 2007, he had a recurring nightmare about disaster, in the form of a plane crash.

“I knew what was happening, but there was nothing I could do or anyone else to do to stop it,” he told the newspaper. Puri added that on the last day of 2007, he was so upset about the disaster to leave his office and go home to see his family.

The head of Scion Asset Management posted his latest tweet shortly after the US government released data showing sales of new single-family homes fell nearly 17% month-over-month to 591,000 units in April — well below the consensus forecast of 750,000 units.

Moreover, the S&P 500 fell 2.5% on Tuesday and closed 18% lower for the year. The tech-heavy Nasdaq is down 3.8% and is now down 29% this year.

Berry rose to fame after predicting the housing market crash in 2007 and 2008, and made a fortune. Famous.

“Today’s fads (#BTC, #EV, SAAS #memestocks) are like housing in 2007,” he tweeted in March 2021.

“Overall, it’s not wrong, driven only by speculative fervor to insane heights from which a fall would be so dramatic and excruciating,” he added.

Burry, who bet on Tesla stocks last year, compared the hype around Elon Musk’s electric car company to the housing boom.

“Okay, another Big Short getting bigger and bigger and bigger too,” he tweeted in response to Tesla’s stock price surge. “Enjoy it until you’re done.”

Tesla stock is down 48% this year, wiping nearly $600 billion from its market value.

More broadly, Barry predicted that the next market crash would dwarf the 2008 recession, which sparked a global financial crisis.

The alarm sounded about the “greatest speculative bubble of all time” last summer, warning retail investors pouring money into meme stocks and cryptocurrency that they were headed toward the “mother of all meltdowns.”

Read more: Buy these 11 undervalued stocks that smashed earnings expectations even as fears of a market crash persist, according to Morningstar.

Read the original article on Business Insider

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