Americans have invested more than 7 trillion dollars in Index funds.
Do you possess Index fund or commonly known as ETfs Exchange traded funds as a part of your investment portfolio? A large number of people in our circle do so, our friends, our family members, and colleagues almost everyone is invested in ETFs in one form or an other. What if I tell you that we are about to experience a massive Index Fund market bubble? The most invested ETF is about to suffer a huge bubble burst. This is what Michael Barry, one of the legendary investors said in one of his recent tweets.
So far the success ratio of Michael burry is 90%. In early 2021 he predicted huge inflation and warned investors about the incoming stock market crash, since than market is down 30% from its height. And when market started to rally again, he warned everyone and called it a dead cat bounce. He openly announced that he has sold everything. You would be surprised to know that, two weeks after his tweets market went down almost 20%. Now once again he is predicting another crash.
Original Tweet
“Difference between now and 2000 is the passive investing bubble that inflated steadily over the last decade. All theatres are overcrowded and the only way anyone can get out is by trampling each other. And still the door is only so big.”
Now question is, what did he mean by this? Could an innocent market tracking index fund actually bring the entire stock market down? Let us try to find it out.
By purchasing a market tracking index fund, you are actually buying the stock which represents diversification across the overall market. For instance, the biggest of these index fund is SP 500 Index Fund. Buying these shares is a small representation of ownership of largest 500 companies in the United States.
The idea is that by purchasing the index fund, we will get the same return as the market over the time. It is a return which history shows is not shabby but quite stable. It is 10% annually for the SP 500 in long run. It is the astoundingly amazing history of annual returns along with the simplicity and ease of implementing this strategy, passive investing gained popularity. According to a Bloomberg’s intelligence study, on average, more than 20% of SP 500 shares of each company have been observed to be successfully held via passive instruments.
For instance, back in year 2003, 3.3% of the market constituted the passive structures. Currently these numbers are at higher end. Now the question is whether this dominant passive investment is good for market? Michael thinks it is concerning.
Link To Join On Patreon & Discord
Benefits
One On One Options Trading Training Sessions every week. A to Z of Options Covered
Chat Support during US stock market hours. You can ask any question.
Already 1000 plus members to chat and interact. Know what others are buying etc.
Weekly Stock market commentary.
Weekly Alert on options trades and buying selling opportunities.
Timely Up to date commentary on changing stock market scenarios.
Ask any question during US stock market hours.
All above benefits for a monthly charge of just $20 dollars. Limited time offer, actual price is 120 dollars per month.
Link do Vídeo
As I would see it, the go to solution to climate this downturn and high expansion is momentary exchanging, rather than long haul exchanging, most people utilizing these methods are netting a lot of gains, sure the dangers are higher yet once more isn't the ongoing business sector similarly as unsafe?
but why should people sell their funds in 2022? Seems inflation is tamed and stocks are on the upwards trend again
I will wait for Father of all crashes to come, mother of all crashes will be soft, cause mother is soft, we can survive don't worry be happy😊
You left out companies repurchasing there shares or the market rallying because the Fed keeps rates ultra low.Fundamentals matter now but any downturn the fed will return to central planning
Sometimes mere words can cause panic. Instead of fire in the theatre, Burry could yell "Bomb!" and trigger the same effect. Scaring everyone out of the theatre and people getting trampled and killed for no reason.
My spouse and I are adding a variety of stocks/ETF to my present holdings for the long term, We've set aside $250k to start following inflation-indexed bonds and stocks of companies with solid cash flows, I believe it is a good time to capitalize on the market for long-term gains, but it wouldn't hurt to know means of actualizing short term profit.
Audit the Audit?
just to have a video…. always saying like this like that… this will happen… whatever…
We just need to hold onto our hopes and wait to see how things turn out because market movements are almost always unpredictable
My greatest happiness is the $ 64,000 bi – weekly profit I get consistently from my $ 15,000 investment despite the economic fluctuation…
Crash will eventually come as soon as the cocktail is stirred well as u have the crypties, pandemic, idiots leaders, wars and fear get mixed. Avalanche of evaporation has started let's see the bottom
Wow, I am listening to this on my security outside patrol, and I understand it clear as day
Every time I see one of these videos, I tend to think that they are sharing information that has already passed and happened thinking in those terms it kind of aligns with my theory that we are at the bottoms already I believe we have hit the lowest lows with company stocks crashed over 50% just this month alone some companies have crashed over 30% and I believe right now is the time to buy. We will see with the federal reserve announcement tomorrow if the CPI report comes in better than that will support my theory that we are at the bottom and it’s time to buy in. Does anybody have any thoughts or advice they could share please!!
We have been hearing this for ten years. Don’t think so.
I'm hoping for a great depression-type market crash. Fortunes will be made when the smoke clears.
I appreciate your approach to teaching.. To my understanding this just proves how much we need an edge as investors because playing the market like everyone else just isn’t good enough, we just need to hold onto our hopes and wait to see how things turn out because market movements are almost always unpredictable. In my portfolio, I'm noticing more red than green.
Did you narrate The Sandlot?
We need to see a massive correction/crash to bring the "To the Moon speculator's" back to earth
This guy knows it all 😂😅😅😅🤣🤣
All I hear is "BUY BUY BUY!!!!" 🤣🙏
Apple is going to bring the whole house down.
Wow 95% of comments are the scammers. So sick of seeing them on every channel. Who falls for this rubbish.
Aha, "crowded theaters" means that only those who set the lowest selling price will be able to "leave the theaters", resulting in a collapse of the price.
Indian market is all time high.
Michael Bury said this 34 days ago as well
This guy sounds familiar 🤔
Your tone of voice is CRAP.
I feel like my 401k is going to tank even more. I'm cashing out and waiting for a new president to take over. I've literally lost the house investing during the Biden regime. 😥
and if not in the last 31 days of 2022, the first of 2023 or the second 31 of 2022 or….
I strongly advice everyone to own a Tech stock before it gets late, It's Crystal Clear Techs are the future, Everyone can clearly see what's going on in Web 3.0
I don’t think it will be an absolute crash… it will continue until end of March when I expect a complete depression point… I believe Michael is now being an attention getter
Fantastic< update, greatly appreciated. On the other hand there are many ways of manipulating the market. I am glad as a small investor that I am putting my hard earned savings into the most that being said the only transparent market there is day trading. I've made over 11BTC using Grayson Miles method, his trading skills is exceptional
I've been seeking some investment guidance and It seems like I am never able to identify trends, options always go against me, and I can't utilize scanners efficiently. I am looking for a simple, reproducible passive income strategy that supplements my income and will eventually replace my wage income. I will really use some advise please
I <will forever be indebted to you Ms.Helen Campter, you have changed my entire life. I will continue to preach on your name for the world to hear that you saved me from huge financial debt with just a small investment. Thank you very much, Helen.
…
Weird I always thought etf holders were mostly bear investors 🤔
"The starting point of all achievement is desire." -Napoleon Hill
Doubt the statement that trading in the index constitutes only 5% or less of the trading in a component stock. Most components of an index trade together with the direction of index in real life, around 80-90% of the time, whatever any brokerage researcher says. Burry's thesis is not refuted by this unrealistic research "result".
This is another video that dont't commensurate with the title, just a trick to entice us to watch and waste our time!
"The only place where success comes before work is in the dictionary." -Vidal Sassoon
Selling everything 😮
You didn’t talk about crime and crime. Buying a stock doesn’t make it go up if they get routed to the dark pool.
ALL I OWN IS AMC … fkk naked Shorts. Hodl baby. They will crumble
M.B. is Broken clock . He predict only one dooms day perdiction. Occasionally he will be right. 90% accuracy is definitely wrong statement
They've got to get more calls than puts before this. At this point put volume is the highest it has ever been , yet here we are . Wait for this rally to end within the next 14 days then puts will be cheap and fomo will make those puts even cheaper
Burry’s biggest investment as of now is GEO and QRTEA
Whatever type of investment you decide to get into ,I think the key message here or for me rather is to start investing no matter how small.when you invest,you're buying a day that you don't have to work ..I pray everyone reading this become successful