Star investor Michael Burry is betting on a stock market crash - what does that mean for investors?

Star investor Michael Burry is betting on a stock market crash - what does that mean for investors?

According to a report from www.nzz.ch, the stock markets have been stagnating for weeks and well-known investor Michael Burry is betting on a crash. The Chinese government could ban iPhones for millions of government employees, sending Apple shares down nearly 3 percent and also negatively affecting other indices around the world. Burry, known from the film “The Big Short”, is betting on the fall of the American stock market and has placed his short positions against index funds and sold positions in Chinese technology stocks. However, it is uncertain whether and when the crash will actually occur.

Michael Burry's short bets make up more than 90 percent of his fund's positions, indicating a belief in an impending crash. But like Greek mythology, Burry's prognosis could be like Cassandra's - a tragic prediction that no one believes. Burry had already successfully bet on the collapse of the US real estate market before the real estate crisis, but he has not yet been able to repeat these successes.

As a financial expert, it is important to analyze what impact Burry's bet could have on the market. Should the crash occur and his short positions pay off, it could result in a significant decline in the stock market. Investors could suffer losses and confidence in the market could be weakened. On the other hand, Burry's predictions could not come true, which would lead to losses in the value of his fund. In any case, it is important for investors to critically question experts' market forecasts and to include risks in their investment decisions.