Michael Burry: 'I was wrong to say sell'
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(Kitco News) "The Big Short" investor Michael Burry said he was wrong to advise traders to "sell" before the Feral Reserve monetary policy meeting on Feb. 1, congratulating buyers who bought the dip.
Burry's message comes after the failures of Silicon Valley Bank and Signature Bank triggered a banking crisis in the U.S. As risk sentiment returned to the market, equities recovered, with the S&P 500 and Nasdaq Composite rising 5.5% and 14.8% in the first quarter. The S&P 500 Index was also on track to see its best week in two months.
"Going back to the 1920s, there has been no BTFD generation like you. Congratulations," Burry tweeted, citing investors who purchase stocks during selloff.
I was wrong to say sell.— Cassandra B.C. (@michaeljburry) March 30, 2023
Going back to the 1920s, there has been no BTFD generation like you. Congratulations. pic.twitter.com/iAGN0CqmjD— Cassandra B.C. (@michaeljburry) March 30, 2023
Burry, who runs the hedge fund Scion Asset Management, said in January that the U.S. was already in a recession "by any definition," adding that there would be another inflation spike as the Federal Reserve cuts rates again.
"Inflation peaked. But it is not the last peak of this cycle. We are likely to see CPI lower, possibly negative in 2H 2023," Burry said. "Fed will cut and government will stimulate. And we will have another inflation spike."
Burry is famous for spotting the mortgage crisis early and making a fortune against the U.S. housing bubble. In 2019, the investor also made millions by purchasing shares of GameStop, which was well before the Reddit frenzy took over the stock.