Michael Burry (known for calling subprime mortgage crises the Big Short) is drawing comparisons between today and 2008’s market conditions. He says it’s “like watching a plane crash.” Burry now manages a Scion Asset Management hedge fund and he tweeted a pessimistic tone Tuesday, as Wall Street’s selloff continued. Some of the bearish views that Burry had on Wall Street were revealed in his portfolio from last quarter. Burry owned 2,060 put contracts on Apple — a bet against the biggest U.S. company by market cap — at the end of the first quarter, a regulatory filing showed. Burry, a highly active trader, could have ended this position at any time. The bet could have turned out to be profitable if Burry had kept the puts. Apple’s 2022 losses are now nearly 22%. Burry refused to comment. Before the 2008 collapse of the mid 2000s housing bubble, Burry was a well-known investor who bet against mortgage-backed securities. Besides his “Big Short,” Burry made a killing from a long GameStop position last year as the Reddit favorite made Wall Street history with its massive short squeeze. As the Federal Reserve tightened its inflation control measures, fears of a recession have fueled market turmoil. Investors are worried about the possible outbreak of the flu in Ukraine, as well as the possibility that a pandemic in China could follow. The S & P 500 is down about 18% in 2022, and the equity benchmark briefly dipped into bear market territory last week.
