Investor Michael Burry, known for predicting the 2008 financial crisis and portrayed in the film The Big Short, is warning about a potentially dangerous economic setup as oil prices surge and stock markets weaken.
Since the U.S.–Israel strikes on Iran began on February 28, crude oil prices have jumped roughly 50%, with Brent crude trading in the low $100 range and occasional spikes above $110.
Energy-related investments have surged alongside the price of oil.
The United States Oil Fund (NYSE: USO), one of the most widely followed oil ETFs, is trading above $120 and has climbed more than 45% since the conflict began.
Meanwhile, major stock market indexes have been moving lower.
• SPDR Dow Jones Industrial Average ETF (DIA) is down more than 5% over the past month
• SPDR S&P 500 ETF (SPY) has dropped nearly 3%
• Invesco QQQ Trust (QQQ) has also been under pressure amid rising geopolitical tensions
Burry says this combination of rising oil prices, higher inflation risk and weakening...
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