FYI: (This is a follow-up article.)
Michael Burry set fire to investors’ worries when he recently said index funds will cause the market to collapse. He compared indexes to the sub-prime mortgage bubble in 2008, when he made a fortune shorting mortgage securities.
I’ve been investing for 30 years. Doomsayers have been predicting stock market crashes every week of every year since before I was born. And they’ll be predicting financial Armageddons long after you and I are dead. There’s a saying that Wall Street analysts have predicted 100 of the past 3 market crashes.
But Burry has a louder voice than most. He rose to fame in Michael Lewis’ book, The Big Short: Inside the Doomsday Machine. That’s why many people think he has a working crystal ball. Today, Michael Burry manages $340 million in assets at Scion Asset Management in Cupertino, California. In other words, he’s an active fund manager who hand-picks stocks.
Regards,
Ted
https://assetbuilder.com/knowledge-center/articles/why-the-big-shorts-michael-burry-is-wrong-about-index-funds
