Michael Burry has a simple directive for traders: sell.
While it’s impossible to know exactly what he means, a one-word tweet posted Tuesday night by the founder of Scion Asset Management is tapping into the anxiety among market-watchers awaiting Wednesday’s Federal Reserve rate decision.
Burry did not immediately respond to a request for comment.
The S&P 500 just ended January with a 6.2% gain, the best start to a year since 2019, while the Nasdaq 100 jumped nearly 11% for its best January since 2001. That’s leaving some worried about how markets will react to commentary from Federal Reserve officials, who are expected to raise interest rates by a quarter percentage point and push back against expectations that they’ll cut rates later this year.
Stocks were little changed Wednesday at 10 a.m. in New York, ahead of the 2 p.m. rate decision.
Burry, who predicted the 2008 housing crash and was played by Christian Bale in The Big Short movie, is known for his cryptic tweets warning of impending doom. Recently, he predicted another inflation spike in response to government stimulus and said the US is in a recession “by any definition.”
This article was provided by Bloomberg News.