Re:Michael Burry warning of the biggest market bubble in his...
by edmundsauto on Wednesday June 16, 2021 @07:02PM
(#27534479)
You can divest, and do what with the money? Real estate is the best I’ve come up with, but even real estate prices are bananas.
Re:Michael Burry warning of the biggest market bubble in his...
by a0-prw on Thursday June 17, 2021 @01:04AM
(#27536275)
> 1) divest from said assets classes or 2) short said asset classes.
If you really think it's a bubble you should do the first and put your money into something you think is safe.
The second depends on timing and "knowing" how big the bubble will get (How much damage can you take before things start going your way?). I don't think anyone can know that, so shorting is speculation/gambling.
It matters because you can: 1) divest from said assets classes or 2) short said asset classes. It also matters because there are downstream consequences of a broad market crash, from which you can protect yourself (if you choose to believe this prediction).
> Frankly, I'm more worried in general over normal economic issues than I am about any speculative asset bubbles
There's nothing stopping you from worrying about inflated asset prices along with your long list of other unrelated concerns.
I agree that the article is light on details, but I fail to understand the rest of your point if there is one.