'Big Short' Investor Michael Burry Reminisces Dow's Largest Single-Day Fall In 2008: Wonders 'If This Could Be Worse'

'Big Short' Investor Michael Burry Reminisces Dow's Largest Single-Day Fall In 2008: Wonders 'If This Could Be Worse'

Big Short’ investor Michael Burry has expressed skepticism on the current global economic environment questioning whether it could be worse than the 2008 financial crisis.

What Happened: The investor, who made his fortune betting against the housing market in the years leading to 2008, shared a link to a story that discussed the Dow’s largest single-day drop on Sept. 29, 2008, when the House voted against a proposed $700-billion rescue of the financial system. The index had dropped 777 points, its largest single-day drop in history until that point.

See Also: 'Big Short' Investor Michael Burry Says This Could Be The Real Reason Yields Are Rising Despite Deflation Talks

“Today I wondered aloud if this could be worse than 2008. What interest rates are doing, exchange rates globally, central banks seem reactionary and in CYA mode. One of my analysts said it was spooky that today I would wonder that alpine. Anniversery,” Burry said in his now-deleted tweet.

Interestingly, the Dow has witnessed more intense single-day drops since then. During the pandemic year of 2020, the index witnessed single-day drops of over 7% three times in the month of March.

Why It's Important: Burry’s skepticism comes at a time when global assets have been battered by rising interest rates and persisting hawkishness among central bankers. The sustained hawkish stance adopted by the U.S. Fed despite signs of inflation having peaked out has kept the markets extremely volatile. Experts like ARK Investment Management’s Cathie Wood have criticized the U.S. Fed’s policy stating it is significantly more restrictive than in the 1980s.

The Vanguard Total Bond Market Index Fund ETF BND and the iShares Core US Aggregate Bond ETF AGG have lost over 4% in one month. The SPDR S&P 500 ETF Trust SPY, which tracks the S&P 500, is down over 8% since the beginning of the year.

Read Next: Cathie Wood Says Powell's 'Sledgehammer' To 'Slay' Inflation Way More Powerful Than Volcker's In 1980s: 'Fed Could Undermine Its Legacy'

Posted In: ARK Investment ManagementCathie WoodInflationMichael BurryThe Big ShortNewsShort IdeasGlobalEconomicsMarketsTrading IdeasGeneral