Hi HODLers and Hiveans,
This will be a lazy Saturday post before heading to get some nice sun exposure later this day.
Michael Burry famous thanks to the book of “The Big Short” says strong consumer spending may indicate more trouble ahead.
He also pointed out that in every long lasting bear market there has always been bear-market rallies and as he points out, the average size of this bounce has been 20-23%. Exactly where we sit...
He said there were:
26 bear market rallies from 1929 to 1932 and 2000 to 2002, and the average size of those gains was 23%.
I do not know if this time is different as there are many new factors such as the political pressure on central banks to please citizens and therefore the political party in place (which ended up with this money printing frenzy).
I also think society became fragile and I am just not sure we could live through a recession/depression as we were used to for the past 60 years.
Let's see how this plays out but I am investing cautiously, expecting to be blindsided at some point.
Source: Michael Burry Says ‘Addictive’ Consumer Spending Heralds Trouble
Stay safe out there,