'Big Short' investor Michael Burry applauds Elon Musk's Twitter purchase — and sees shades of the Great Crash of 1929 in the recent stock-market tumble
- Michael Burry applauded Tesla CEO Elon Musk for reaching an agreement to buy Twitter.
- "The Big Short" investor seemed to compare the Great Crash of 1929 to the recent stock-market slump.
Michael Burry saluted Elon Musk for striking a $44 billion deal to buy Twitter, and drew a parallel between the Great Crash of 1929 and the recent stock-market tumble, in a pair of tweets on Monday.
Cheering on Musk
"Just here to support Elon and Kirk," the investor of "The Big Short" fame tweeted. He shared a link to a music video of "Portals," Metallica guitarist Kirk Hammett's debut solo EP.
Burry tweeted earlier this month that Musk taking control of Twitter after pledging to prioritize free speech would be good for the US. He noted the social-media platform has previously restricted the sharing of disputed news reports that were later verified.
In the past, the Scion Asset Management boss has ridiculed Tesla's market valuation, bet on the electric-vehicle company's stock to tumble, and accused Musk of selling Tesla stock not to pay taxes, but because he knew it was overvalued and wanted to cash in some shares and pay off some personal debts.
Shades of a past crash
In a second tweet on Monday, Burry pasted a digital copy of The New York Times' front page on October 30, 1929, and wrote, "This too." He highlighted its jarringly positive headline about the previous day's stock-market crash — a catastrophic event that became known as "Black Tuesday" and precipitated the Great Depression.
"Stocks collapse in 16,410,030-share day, but rally at close cheers brokers; bankers optimistic, to continue aid," the newspaper blared.
Burry likely sees similarities between the blinkered optimism of that era, and the stubborn belief among some investors today that interest-rate hikes, raging inflation, the Russia-Ukraine war, and the pandemic's resurgence in China won't tank the stock market or spark a recession.
The hedge fund manager has previously compared retail investors' frantic buying of meme stocks and options to the rampant speculation that preceded the Great Crash of 1929. He's also likened it to the euphoria that fueled German hyperinflation in the 1920s.
Burry is best known for predicting and profiting from the collapse of the mid-2000s housing bubble, investing in GameStop before it became the quintessential meme stock, and betting against Tesla stock and Cathie Wood's flagship Ark Innovation fund last year.
Here are screenshots of Burry's two latest tweets:
