[WheelsAtLarge]

You are right. I'm one that believes that the market will continue its downturn for a few more weeks but there's no way I would bet 80% of my portfolio even if I was 99.99% sure of a downturn. I know better and I'm an amateur. Burry is a professional, he knows better than to be so reckless. The news article is just reporting nonsense. With options it's easy to lose it all even if ultimately you were right since options expire after a period of time. You have to be very careful if you decide to use them as an investment tool. I have no doubt he's betting on a downturn but he's not betting most of his assets. What ever it is, it's small relative to his portfolio.

[gizajob]

He's also basically shorting S&P and Nasdaq ETFs - $1.8billion is a blip against these, like throwing a pebble at an oil tanker...yet the article seems to have an air about it like the very presence of this man and this money is enough to help precipitate his expected downturn.

The market does seem overpriced at the moment, particularly stocks like Nvidia undergoing some kind of correction, but it seems that the medium term trajectory is on the rise. I'm not sure what kind of huge downturn the market isn't going to be able to account for when phenomenal, unprecedented shocks like COVID are something it took in its stride even though prices are still recovering due to the debt so many companies took on. The bullish run of the past 6 months seems to have taken analysts by surprise so to be expected that some of them are now betting against its turn in the other direction.

[rchaud]

The covid shock was managed because almost every government switched to expansionary fiscal and monetary policy to keep unemployment down. Interest rates have gone up massively, and Covid relief payments have dried up.