‘The Big Short’ Investor Bets $1.6 Billion on Stock Market Crash

[Picaro]

FYI....

Since the day this ominous thread was posted, the S&P 500 is up just under 30%. The NASDAQ is up a little under 35%.

The moral of the story? No one can tell you where the stock market is going, why, or how fast.

Burry was hedging his bets. You can't assume you know what a famous investor is thinking. It's not a good idea to base your investing on anecdotal evidence. You have to do the work yourself. If you're not willing to do that, I (retired financial advisor and current active investor) recommend you just not get into active investing. Buy into SPY and QQQ and just add to them monthly. Diversify per your situation to mitigate risk. You'll do fine.

The markets indexes are moved by a handful of big corporations' stocks, so just because the indexes go up doesn't mean every stock on it went up. Do you happen to know which stocks he shorted and when? I bet nobody here does or how he set his up or at what prices he exercised his options at; even stocks that go up over time still have price drops on their way to a long term rise, even Apple had decent shorting opportunities all year long last year.

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[Mac1958]

The markets are moved by a handful of big corporations' stocks, so just because the indexes go up doesn't mean every stock on it went up. Do you happen to know which stocks he shorted and when? I bet nobody here does.

It can be found on his fund's 13F, but he's just one guy, so I don't care enough to look it up.

 

[Picaro]

The moral of the story? No one can tell you where the stock market is going, why, or how fast


We know it always crashes; it's a Ponzi scheme.

 

[Dr.Know]

Back when I was wild and craze in the late 60s and 70's, I got hooked on the idea of trading stocks as the way to make the big bucks. Over a few years, I studied the bar charts, point & figure charts and, volume charts. I read the Journal daily. I subscribed to various soothsayers who advertised in Barron's. I traded stocks daily holding a day or so up to a few months. After 4 years I calculated my returns after taxes and found I was making money but only half what I would made if I had just invested in the Dow stocks and forgot about it.

My biggest loses were in shorts. My biggest profits came from a few stocks I held 6 mos. or longer. This is when I became a real long term investor which was the smartest thing I ever did. I gave up the idea of playing the market for investing. I still play but I do so in Vegas.

“It never was my thinking that made the big money for me. It always was my sitting. Got that? My sitting tight!
Jesse Livermore

 

[luiza]

The moral of the story? No one can tell you where the stock market is going, why, or how fast


We know it always crashes; it's a Ponzi scheme.

The market never crashes . Ever .
Sometimes it performs much worse than most investors imagine it will .
That is simply a correction which once in a while can be devastating .

Interesting how accurate Fibonacci sequences are as market movement predictors.
Almost as though a share price mimics Nature .