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“Markets can remain irrational longer than you can remain solvent“. This was also the case with Burry and others shorting in 2008.
by mym1990 4y ago
“Markets can remain irrational longer than you can remain solvent“. This was also the case with Burry and others shorting in 2008.
- heisenbit 4y agoOne may argue the markets were irrational during the ultra low interest rate period and this disaster here is the result of hoping they would return to irrational before liquidity ran out.
- mym1990 4y agoEh, during the low interest rate period things seemed to behave as one might expect: companies deploy capital and hire like crazy, companies have access to mountains of investment pools, home prices rise, inflation rises, etc... Many of the things happening today are contradictory, but eventually a domino falls to topple everything else. Knowing which domino does that would make you lots and lots of money, albeit maybe with some guilt as everyone else suffers.
- vsareto 4y agoBurry got lucky but has been wrong more recently. He’s basically an investment doomposter.
- mym1990 4y agoYep, and he also almost got wiped out in 2008 even though he was "right".
- CodesInChaos 4y agoAnd then there are central banks which can pump literally unlimited amounts of money into the market.
- mym1990 4y agoCan and unfortunately...do.
- nico 4y agoThis was also the case throughout 2020-21. And we are now seeing the effects.