Comment by jimlawruk
From the Big Short: Lawrence Fields: "Actually, no one can see a bubble. That's what makes it a bubble." Michael Burry: "That's dumb, Lawrence. There are always markers."
From the Big Short: Lawrence Fields: "Actually, no one can see a bubble. That's what makes it a bubble." Michael Burry: "That's dumb, Lawrence. There are always markers."
I feel 18 out of 2 isn't a good enough statistic to say he is "just right twice a day".
What was the cost of the 16 missed predictions? Presumably he is up over all!
Also doesn't even tell us his false positive rate. If, just for example, there were 1 million opportunities for him to call a bubble, and he called 18 and then there were only 2, this makes him look much better at predicting bubbles.
Ah Michael Burry, the man who has predicted 18 of our last 2 bubbles. Classic broken clock being right, and in a way, perfectly validates the "no one can see a bubble" claim!
If Burry could actually see a bubble/crash, he wouldn't be wrong about them 95%+ of the time... (He actually missed the covid crash as well, which is pretty shocking considering his reputation and claims!)
Ultimately, hindsight is 20/20 and understanding whether or not "the markers" will lead to a major economic event or not is impossible, just like timing the market and picking stocks. At scale, it's impossible.