(PresidentialInsider.com)- After deleting his Twitter account in April 2021, Scion Asset Management CEO Michael Burry, who was immortalized in the movie “The Big Short” starring Christian Bale, returned to Twitter last weekend to issue some cryptic warnings about the stock market and the US economy.
Burry shared a link to a paper titled “In Search of the Origins of Financial Fluctuations: The Inelastic Markets Hypothesis,” which posits that investing one dollar in the stock market increases the market’s aggregate value by approximately five dollars.
Along with the link, Burry tweeted “If $5 incremental market value results from $1 added to stocks, and 90% of millennials (aka future wealth owners) are in passive market vehicles, that 5:1 ratio will get much, much sillier in time. COVID didn’t stop it. Inflation might (not). #epiphany.”
Back in April, Burry deleted his Twitter after officials from the SEC paid him a visit. A month earlier, in a now-deleted tweet, Burry said that his Twitter use along with his recently making the news apparently brought him to the attention of the SEC.
In his tweets on Sunday, Burry also took the Federal Reserve to task. Linking to a Wall Street Journal article that indicates there is nothing supporting the Fed’s claims that inflation is already coming back down, Burry tagged the Federal Reserve asking if they are lying.
But Sunday was the first time Burry reactivated his Twitter account to weight in. Back in June, Burry briefly returned to Twitter to issue a warning that crypto and meme stocks were going to plummet and the “mother of all crashes” was coming.
The Scion chief attracted something of a cult following since he anticipated the housing-market crash that kicked off the global financial crisis of 2008. His billion-dollar gamble against the bubble was first made into the book “The Big Short” which later become a movie.
Burry also helped to pave the way for the GameStop short squeeze back in January that kicked off the meme-stock boom. He bought a stake in the video game retailer in 2019 and wrote several letters to its board, which emboldened retail investors to bet on the stock.