There is one name that I have been following very heavily lately. I’ve written two or three articles on him and to be honest I’m kind of a fanboy of him. I’m sure you already know who I’m talking about because of the title, Michael Burry.
Michael Burry started this meme stock madness, back in quarter 4 of 2020 he announced that he had a massive position in Gamestop. When I mean massive…I mean massive. Reddit decided to follow him into the trade and send Gamestop “to the moon.” This was caused by a combination of a high short float and gamma squeezes.
Burry said in a tweet– ”When crypto falls from trillions, or meme stocks fall from tens of billions, #Mainstreet losses will approach the size of countries.”
He has also pointed out a crash in crypto, coming to the conclusion people are borrowing a reckless amount of money to buy their favorite coins. Tweeting, “The problem with #crypto, as in most things, is the leverage.” Then going on to say, “If you don’t know how much leverage is in crypto, you don’t know anything about crypto.”
I usually take Wallstreet analyst opinions with a grain of salt but Burry has been hot this year, with a short on Tesla and a long on what are now called “meme stocks,” he’s been right and he’s made a lot of money doing it.