With markets in turmoil and a recession looming, anxious investors are scouring tweets from Michael Burry, who is best known for his bet against the housing market before the financial crisis.

Burry is a somewhat unlikely Twitter star. But his cryptic tweets, which disappear from his account at some point after they’re published, have captivated worried traders looking for guidance in an uncertain and rapidly changing investment world.

Ranging from his views on the Federal Reserve to inflation to the recent stock market plunge, the tweets reflect increasing fears of an economic downturn, at a time when Americans are already reeling from soaring inflation and a lack of affordable housing.

Burry is validating that sense of dread, and his accurate bet on the housing market crash gives him credibility, even to newbie investors that haven’t experienced a recession before, according to Peter Atwater, professor of economics at the College of William & Mary.

“There's an intense level of vulnerability today,” Atwater said. “In times of uncertainty, we are predisposed to follow other people.”

Since he was immortalized in Michael Lewis’s book “The Big Short” and the subsequent movie, in which he was portrayed by Christian Bale, the founder of Scion Asset Management has become a household name, despite rarely making public appearances or statements. The website for his firm features only a deep blue background overlaid with a faded map of the world and a contact page.

On Twitter, Burry goes by “Cassandra B.C.” — an apparent reference to the priestess in Greek mythology who was fated to tell true prophecies that were never believed. He is not following any other accounts, but has more than 930,000 followers. He declined a request for comment.

That mystery only adds to the appeal, said Shaun Maslyk, a certified financial planner and host of “The Most Hated F Word,” a podcast about personal finance.

“To have certainty and feel safety is so important to us, so when we see these tweets maybe we think, this guy knows what he's talking about,” he said. “For someone who is worried, it would strike a chord.”

In general, investors pay more attention to predictions about downsides than upsides, said Dan Egan, head of behavioral finance for robo-adviser Betterment. With Burry, there’s added credibility since he was right the last time and put his money on the line based on those beliefs.

Before the global financial crisis, Twitter was still relatively new, especially in the investment world. There wasn’t an easily accessible forum for both famed investors and everyday traders to converge. Flash forward to 2022 and there are too many platforms to keep up with — not just Twitter but Reddit, Discord, TikTok and more.

On TikTok, young traders delve into the meaning behind Burry’s tweets, with one video that got 15,000 like referring to him as “recession man.” It’s hard to tell exactly how popular his tweets are since they’re deleted so quickly, but it’s not uncommon for them to rack up thousands of likes within minutes.

Cynics may wonder why Burry would share investment viewpoints so publicly and question a hidden agenda behind it, said Itzhak Ben-David, finance professor at Ohio State University. But Burry’s tweets  may be resonating precisely because they’re somewhat general — he’s not recommending specific trades but rather making overarching predications about markets and the economy.

At a time when famous investors and executives including Elon Musk and Cathie Wood are using Twitter as a massive platform, reactions on social media both reflect and perpetuate sentiment, especially during a bear market.

“The tweets that get shared and liked the most are the ones that fit with how we feel the most,” Atwater said. “Twitter is an enormous mirror.” 

This article was provided by Bloomberg News.