
Michael Burry successfully shorted the 2008 bubble, but he almost went bankrupt doing so. If the market had stayed irrational for just a bit longer, he would have lost everything. I do not have tens of millions of dollars with which to hold out until the market returns to rationality, so I definitely won’t be taking the gamble of shorting it. If you need me to explain in a more simplistic way then I can try, just let me know.
Well according to all the fundamentals, the market is massively overvalued right now. The thing that’s unpredictable is when that will stop. Just like how Burry knew the housing market was overvalued based on the fundamentals of loan underwriting, but couldn’t accurately predict when the shit would hit the fan.