The man who predicted the collapse of the US real estate market and produced the Oscar-winning film Bet on Uncertainty posted a coded message on Twitter, which he deleted shortly after. According to Bloomberg, it was a warning of another deep fall in the markets.
“The frenzy is back. After 1929, 1968, 2000, and 2008, the pressure of the bull-to-bubble frenzy has faded. But the madness of the post-covid era is still here. It’s the same as 2001 before Enron, before 9/11, before WorldCom,” said investor Michael Burry, according to Bloomberg. “It’s not entirely certain what exactly Burry is referring to in his coded message, but he’s obviously comparing the present to the time before the tech bubble burst,” Bloomberg’s Claire Ballentine explained, noting that Burry later deleted his tweet, which he does quite often.
At the same time, Burry pays for one of the best timers on the market. He gained this reputation in the period before the American real estate bubble burst in 2008, when he was the one who spotted the probability of a stock market crash from seemingly unrelated market indicators. At that time, he himself earned 100 million dollars from the crisis, the investment company Scion Capital, whose management Burry convinced to bet against the American economy, earned another 700 million and increased the investment by hundreds of percent.
Thanks to this, Burry became the hero of the Oscar-winning film Bet on Uncertainty (also known in our country under the original title The Big Short).
Ericonn CEO: There is value in investing in real estate where rental income exceeds the mortgage interest rate
“We mainly invest in residential real estate and land in statutory cities and the furthest within reach within 30 kilometers. We are also interested in recreation centers in South Bohemia and in the Šumava and Krkonoše mountain regions,” says Patrik Vlášek, Ericonn’s sales director.
Market crash on the horizon?
Burry has already predicted the collapse of the markets several times in recent months. Bloomberg reminds us that the decline is indeed happening. For example, the broader S&P 500 index lost 13 percent in the first half of the year, making this year the worst first half for the U.S. economy since 1970.
Bloomberg then reports that, for example since Michael Burry’s last similar tweet, the stock market has fallen by as much as eight percent in just one month. But then the trend reversed and the markets started to rise again.
The Czech economy is teetering on the edge of stagnation. And it will get worse
According to the preliminary estimate of the Czech Statistical Office, the domestic economy showed moderate growth in the second quarter compared to the previous one. It’s a positive result, even if it’s still only preliminary. In any case, the Czech economy is slowing down significantly. At the beginning of the year, it surprised with a quarter-on-quarter rate of 0.9 percent, which has now approached zero (0.2 percent).
Lukáš Kovanda: The era of the “hawk” of the CNB is coming to an end. But everything can be different in autumn
Hawks Marek Mora and Tomáš Holub remained in the minority. The new board members sided with their governor’s dovish rhetoric.
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