Michael Burry, widely known for his role in the prediction of the 2008 subprime mortgage crisis and the collateralized debt obligations bubble, now predicts the same fate for Index funds and a possible ETF crash.
The Big Shot’s hero has indicated that the massive inflow into the ETF market precedes a crisis that could cripple the entire system in the long run. The contrarian explained that the influx of index funds is now affecting the prices of stocks and bonds, creating a bubble that could adversely affect the market investors at some point.
He also pointed out the risks that could be faced in this case – which we attempt to explain in a few steps [...]
