I must short, most should not - Michael Burry exclaimed !
He believe market is toppish and he believes it is going to be like 1987 again ! I could not see it in this platform so I googled it and it shows a total of 25% , with Hong Kong and other Asia markets doubling the fall percentage.
Wow, pretty accurate ! If it does fall more than 25% , then it will close the two gaps I have drawn in the chart. So , are you going to panic and start selling your shares OR dipping into your secret stash and join Michael , hoping to make a good profit ?
I don't know about you. I am just sitting tight and not letting all the headlines news I read affect me too much. Treat it as entertainment! There are just too many factors to consider IF a market is going to fall. Trump is definitely one powerful man, his words does move the market , the wars (who now still talk about Straits of Hormuz.......), the 5 years ongoing Russia-Ukraine war, the fight between US and China for AI supremacy ,etc.
Perhaps , he was right once and that made him popular and he starts believing in his own prophecy. If he starts to long, then the world may question him so he may not have a choice but to upkeep his reputation. I am just guessing here, I could be wrong.
Once upon a time, I thought I wanted to be a contrarian and do what most of my friends don't do - SHORT the market. At first, I was on a lucky trail and did win some bets. The greed monster grew as money comes way too easily. I double the position size and when market move against me, I adjusted the SL manually to "cheat". Eventually, I lost it all to the market, badly bruised financially and egoistically.
So, my advice is NOT to follow the expert UNLESS you have too much IDLE CASH and dunno what to do. Follow the trend , follow the trend, follow the trend. Say 3 times coz it is important !
You can be a HERO overnight if you got it right or your portfolio can turn to ZERO as well. Your choice.
Please do your own due diligence.