Is Michael Burry Right About the U.S. Stock Market Again?

investing.com:

Everyone knows by now that Michael Burry has decided to take a billion-dollar bearish bets against the S&P 500 and the Nasdaq, as shown on his latsest 13 filing. According to the document, Scion Asset Management purchased $866 million worth of puts against the SPY and $739 million worth of puts against the QQQ, exposing over 90% of its portfolio.

But despite gaining fame for 'The Big Short' and his assessment of the 2008 housing market, Michael Burry is also known for firing blanks. He frequently retracts his inaccurate forecasts. In fact, since 2015, the S&P 500 has actually posted positive performances after each one of Burry's bearish prognostics.

Here's the list:

With this in mind, let's take a peek at history for some insights on whether the 'Big Short' investor is right this time around.

Since 1928, the S&P 500 has ended the year positively with a +10% (or more) gain a whopping 55 times. Yet, within those positive years, there were 23 instances of a correction of -10% (or worse).

Additionally, during the same time frame (up until now), the stock market has had 34 years of +20% (or higher) positive performance. Still, that didn't prevent it from encountering a -10% (or deeper) correction along the journey.

Check out these years when S&P 500 annual performance was +20% or more:

But this year, the biggest dip the index faced was only around -8% (between February and March). So, relatively speaking, we're experiencing milder corrections.

Keep in mind: stocks can be wild and unpredictable, a bit like the twists and turns in a rollercoaster, all driven by investors' impulsive decisions.

Let's also remember that in the second half of the previous year, things were rosy for everything except tech stocks, which had a bit of