Michael Burry, portrayed by Christian Bale in the movie “The Big Short,” returned to Twitter on Sunday, issuing cryptic warnings about the United States stock market and the overall economy.
“If $5 incremental market value results from $1 added to stocks, and 90% of millennials (aka future wealth owners) are in passive market vehicles, that 5:1 ratio will get much, much sillier in time. COVID didn’t stop it. Inflation might (not). #epiphany,” Burry tweeted on Sunday.
The tweet links to a paper from the National Bureau of Economic Research. The paper, “In Search of the Origins of Financial Fluctuations: The Inelastic Markets Hypothesis,” suggests “investing $1 in the stock market increases the market’s aggregate value by about $5.”
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