Wall Street Bloodbath!

18 Aug

Wall Street Bloodbath!

What They Are Saying!

We hope you haven’t wearied of us writing from time to time about Michael Burry.  For those who don’t remember, Burry is the somewhat quirky investment advisor made famous in the movie about the bursting of the mortgage bubble, The Big Short, in which he was played by Christian Bale.

Burry made himself and the investors in his fund hundreds of millions of dollars by shorting mortgage credit instruments back during the mortgage meltdown.  

It’s not that he is always right.  Nobody is.  But Burry understands more about finance and economics than your average Federal Reserve official.  And he regularly shows flashes of brilliance.  

For example, while the Fed was patiently explaining transitory inflation to us a year and a half ago, Burry was tweeting furiously about inflation on our doorstep.  And not just a little.

Most recently, Burry’s hedge fund Scion Asset Management has dumped almost all his stock holdings.  Among the stocks he exited are big names like Alphabet (Google) and Meta (Facebook).

We’re not surprised.  Burry has been talking about a stock crash since before the big sell-off hit earlier this year, and he doesn’t think it’s over yet.

We want to mention Wall Street veteran Art Cashin as well.  Cashin is Director of Floor Operations at UBS Financial Services.  “Overbought” is Cashin’s description of stocks at today’s levels.

Have you heard the term “analyst herding”?  It is when stock analysts are acting like cattle, and sometimes stampeding off a cliff together.  Robert Buckland, who heads a team of stock strategists at Citigroup, finds that, just like prior market crashes, “analysts are net buyers of every sector in every region.  But then they usually are.”

“Our index of global sell-side recommendations,” Buckland says, “is back to peak bullishness levels reached in 2000 and 2007, after which global equities halved.” 

And finally, here’s the latest from Wall Street legend and bubble expert Jeremy Grantham who thinks the next leg down in the stock market could hit in September:  “There’s nothing as quick and spectacular as a bear market rally. With hindsight they signify very little, but at the time they frighten the pants off bears, and they give hope that all is over, all is forgotten, and it’s back to the races.” 

Despite the evidence of your own eyes, Washington pronounces zero inflation and zero recession.  If you would like some straight talk about monetary conditions and how to protect yourself and your family, speak with a Republic Monetary Exchange gold and silver professional today.