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I mean from the fundamental Burry warning makes sense. At its heart, a stock market is a way to exchange ownership in companies. The point is for people who wan

I mean from the fundamental Burry warning makes sense. At its heart, a stock market is a way to exchange ownership in companies. The point is for people who want to be owner to buy from others. If you are buying blindly, pricing doesn’t work anymore. Same with speculation which is tolerated because it brings liquidity and helps prices converge but is very much a by-product.

MuffinFlavored 4y ago
> I mean from the fundamental Burry warning makes sense. Does it? He's not "wrong" to call out the side effect of millions of people "blindly + consistently" pumping their extra cash (savings) into index funds in hopes of return. Sure, this means the market is "crowded" compared to historical times (we're probably at all time high for market participants from a retail/average investor perspective I would guess?) But... what's the alternative? How are you going to tell millions of people "we'd like you to stop investing in the market/deny you access to the chance for 6-10% index-fund-level returns because you're driving valuations up"?
- WastingMyTime89 4y ago
  > But... what's the alternative? How are you going to tell millions of people "we'd like you to stop investing in the market/deny you access to the chance for 6-10% index-fund-level returns because you're driving valuations up"? You don’t need to tell them to stop. If the sole thing pumping these stocks up is excess savings as soon as the economy slows down it’s not going to be sustainable. Some of these stocks will go down as people remove their money from the market and people will lose money. That’s the heart of Burry warning.
  - MuffinFlavored 4y ago
    > If the sole thing pumping these stocks up is excess savings as soon as the economy slows down it’s not going to be sustainable. Doesn't that assume "as soon as the economy slows down, the same people who invested money into equities will pull that money because they need it?"

MuffinFlavored 4y ago

> I mean from the fundamental Burry warning makes sense. Does it? He's not "wrong" to call out the side effect of millions of people "blindly + consistently" pumping their extra cash (savings) into index funds in hopes of return. Sure, this means the market is "crowded" compared to historical times (we're probably at all time high for market participants from a retail/average investor perspective I would guess?) But... what's the alternative? How are you going to tell millions of people "we'd like you to stop investing in the market/deny you access to the chance for 6-10% index-fund-level returns because you're driving valuations up"?

WastingMyTime89 4y ago
> But... what's the alternative? How are you going to tell millions of people "we'd like you to stop investing in the market/deny you access to the chance for 6-10% index-fund-level returns because you're driving valuations up"? You don’t need to tell them to stop. If the sole thing pumping these stocks up is excess savings as soon as the economy slows down it’s not going to be sustainable. Some of these stocks will go down as people remove their money from the market and people will lose money. That’s the heart of Burry warning.
- MuffinFlavored 4y ago
  > If the sole thing pumping these stocks up is excess savings as soon as the economy slows down it’s not going to be sustainable. Doesn't that assume "as soon as the economy slows down, the same people who invested money into equities will pull that money because they need it?"