Michael Burry

The passive index-fund "bubble" will end in a crash (no timeline given).

“Like most bubbles, the longer it goes on, the worse the crash will be”

Said on

4 September 2019 · Email interview with Bloomberg comparing index-fund inflows to the pre-2008 synthetic CDO bubble. No window given ("I just don't know what the timeline will be"); read as a long-run call of about ten years (to Sept 2029).

Source

The Big Short's Michael Burry Explains Why Index Funds Are Like Subprime CDOs · WealthManagement.com (Bloomberg)

Should come true

2029

How sure they sounded

will; "I just don't know what the timeline will be"

Categories

Markets

Importance

3 of 5 · A crash driven by passive-fund outflows would hit the whole US equity market and retirement savings.

Outcome

Not scored yet.