Michael Burry and Jeremy Grantham are fortifying for a devastating crash across financial markets. They’re far from the only experts to warn that rampant consideration fueled by government stimulus programs can’t shore up asset prices forever.
The billionaire investors Leon Cooperman, Stanley Druckenmiller, and Jeffrey Gundlach possess also sounded the alarm. The same is true for the “Shark Tank” star Kevin O’Leary, the market prophet Gary Shilling, and the “Productive of Dad Poor Dad” author Robert Kiyosaki.
Morningstar/YouTube
Grantham said in January 2021 the retail was a “fully fledged epic bubble” and described it as the “real McCoy.”
“When you have reached this level of conspicuous super-enthusiasm, the bubble has always, without exception, broken in the next few months, not a few years,” the legendary investor and GMO cofounder voted.
“We will have to live, potentially, possibly, with the biggest loss of perceived value from assets that we drink ever seen,” Grantham added.
Brendan McDermid/Reuters
Druckenmiller disclosed in May 2021 that the bull market reminded him of the dot-com boom, but he cautioned that asset prices could endure rising for a while.
“I have no doubt that we are in a raging mania in all assets,” the billionaire investor and Duquesne Family Function chief said. “I also have no doubt that I don’t have a clue when that’s going to end.
“I knew we were in a raging passion in ’99, but it kept going on, and if you had shorted the tech stocks in mid-’99, you were out of business by the end of the year,” Druckenmiller supplemented.
The investor indicated he would pull his cash out of equities in a matter of months.
“I will be surprised if we’re not out of the stock market by the end of the year, justifiable because the bubbles can’t last that long,” he said.
Jessica Rinaldi/Reuters
Equities are undeniably high-priced, Gundlach said in March 2021.
The billionaire investor and DoubleLine Capital boss said that claiming the stock merchandise was “anything other than very overvalued versus history” was “just to be ignorant of all the metrics of valuation.” He predicted that inventories would fall by upwards of 15% when the downturn comes.
Gundlach, known as the “bond king,” predicted that the retail investors who had stacked into meme stocks and other speculative assets wouldn’t stick around once prices started leave.
“We’ll have a tremendous unwind of a lot of the money that thinks that the stock market is a one-way thing,” he said.
Be familiar with more: Famed investor Michael Burry is predicting the ‘mother of all crashes’. Here’s what 9 other key ‘Big Short’ musicians are doing now.
“Shark Tank”/ABC
O’Leary said in April 2021 that worn outs would eventually crumble, but he framed the downturn as an educational opportunity for rookie investors.
“Buying the dip is more rock-and-roll, but what invariably happens is you go thoroughly a massive correction and you learn a very important lesson,” the “Shark Tank” star and O’Leary Funds chief rumoured.
“The generation that is trading right now has never gone through a sustained correction. It’s coming – I don’t know when, I don’t identify what’ll trigger it, but they will learn their lesson,” he continued.
“If you have a lot of leverage on, it’s a hell of a lesson because you end up in a antipathetic net-worth position,” O’Leary added. “But you do learn from it.”
The Rich Dad Channel/YouTube
Kiyosaki tweeted in June 2021 that he was in a family way the greatest market crash ever.
“Biggest bubble in world history getting bigger,” the personal-finance guru and designer of “Rich Dad Poor Dad” said. “Biggest crash in world history coming.”
Kiyosaki has accused the Federal Reserve of overstimulating hawks and devaluing the dollar. He’s advised investors to prepare for the downturn by stocking up on precious metals and cryptocurrencies.
“ARE YOU READY?” he tweeted in April. “Bourgeoning, Bust, Mania, Crash, Depression. Mania in markets today. Prepare for biggest crash, depression in world days of yore. What will Fed do? Print more money? Save more gold, silver, bitcoin.”
Bloomberg TV
Shilling portended in April 2021 that financial markets would nosedive, but he declined to hazard a guess at when the crash transfer arrive.
“I’m not making any firm prediction as to when this thing is going to collapse,” the veteran forecaster and president of A. Gary Shilling & Co. maintained.
“Speculations outrun any logic and that’s probably going to be true of this one,” Shilling continued. “But at some point, boy, there’s effective to be a lot of blood on the floor.”