The Blubber

The US equity market was headed for a collapse in 2052, per a Finnish researcher, Klaus Grosby, published in BI.

In a recent paper titled "Armageddon of Financial Markets: Is the US equity market eventually going to collapse?", Klaus Grosby looked at data including the 2008 financial crisis, the pandemic, and the Russia-Ukraine war.

He said supply chains were effected, and that inflation would remained uncontrolled. He used a model data from 1790-1999, which then was extrapolated to the past 20 years.

"The stock market crashes of October 1987 and October 1929 which were investigated in the current research as robustness checks might serve as a guide of how such a collapse could evolve: For both events, market participants observed extreme reductions in market capitalization in a very short time," Grosby said.

On a related note, recently, Michael Burry said this time is different, after reactivating his Twitter account.

On Jan 31, Michael Burry wrote to simply: sell.

Previously, Michael Burry said that though inflation may be receding, investors should prepare for a spike in the future.

“Inflation peaked. But it is not the last peak of this cycle. We are likely to see CPI lower, possibly negative in 2H 2023, and the US in recession by any definition. Fed will cut and government will stimulate. And we will have another inflation spike. It’s not hard,” Burry said.

Read more: https://unusualwhales.com/news/michael-burry-says-this-time-is-different