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‘Big Short’ investor who cashed in on the financial crisis explains how he’s profiting from coronavirus ‘stampede’

Michael Burry says he’s on the right side of this market drop.

Bloomberg

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‘The hysteria appears to me worse than the reality, but after the stampede, it won’t matter whether what started it justified it.’

That’s Michael Burry, of “The Big Short” fame, why he plans on sticking to his “significant” bearish bet during this nasty market downturn.

7073彩票注册Burry, the doctor-turned-investor who made a killing betting against the housing sector in the lead-up to the 2008 financial crisis, said the coronavirus outbreak is delivering a “potential trigger for the unwinding of the passive investing bubble.”

At last check, the Dow Jones Industrial Average DJIA, -3.03% closed down 2,353 points in the latest selloff on Thursday. Both the Nasdaq Composite COMP, -0.27% and the S&P 500 SPX, -2.92%7073彩票注册 ended more than 9% lower.

7073彩票注册“No one knows how long it will last, and so people have a valid reason to sell,” Burry told Bloomberg. “If you are in stocks because they have been going up and because the central banks always could apply the brakes to any sell-off, well, the those pre-conditions are not currently valid.”

Read:There’s a bubble in passive investing, says Michael Burry

7073彩票注册So, he’s in no hurry to close out his bearish bet.

“I would say despite the viciousness of the sell-off, there has not been enough time for the buy-the-dip mentality to truly go away,” he said. “But the fear in the markets is being paralleled by growing fear of the virus, and the twofer is toxic to market sentiment.”

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