It Started: The Worst Market Collapse In 50 Years | Michael Burry

"Morgan Stanley believes that stocks could see a 16 increase from today's levels which would be in line with bear Market rallies this year in Prior and that eventually the S P 500 were bought in between 3032 200 putting us back to pre-pandemic levels."

"Michael burry notes that dead cat bounces are the most epic. 12 of the top 20 NASDAQ one day rallies happened during the 78 drop from the 2000s top. 9 of the top 20 S&P 500 one day rallies happened during the 86 percent drop for the 1929 top. He also goes on to say that the Dow had 10 bear Market rallies so more than 10 percent before bottoming down 89 in 1929, suggesting that it's probably going to take some time before we hit the true bottom."

"Morgan Stanley also tends to agree with this saying historically speaking no bear Market is ever bottomed without a fixed reading of 45 or more."

"First he mentions that as of right now more than 13 of stocks have closed above their 200-day moving average and generally the absolute bottom occurs when that number is closer to five percent."

"there are currently 200 118 companies worth more than a billion dollars that lose a hundred million dollars a year and 29 companies worth more than a 10 billion dollar market cap which still can't turn a profit as he says all the silliness must go with a Michael Berry stock tracker pointing out that these companies include snowflake Uber Shopify rivian and Lucid among more than two dozen others."

"if the trend continues we would be following a pattern similar to 2008 to where the market doesn't bottom for another two years."

"inflation appears in spikes it resolves Fool's people and then it comes back. the chart showing that since the 1940s inflation has never just occurred once and then completely disappeared."

"Michael burry notes that despite the Federal Reserve taking money out of the economy by raising interest rates the average dollar is now being spent more frequently with a high money velocity and because of that inflation will continue to be high."

"this will add more pressure to the housing market where almost 1 in 10 homes are slashing prices at the fastest Pace since 2015."

"since 1990 the biggest rebounds often come right after the worst Falls and out of those only two are sustained while the others lasted a maximum of three months before making new lows."

"the average stock market declines for 1.4 years with an average loss of 41 percent throughout history."

"standard recessions cause an average 26 drop from Peak to trough earnings suggesting that we still could have a bit more room to fall."

"the average bull market if we don't include drops of less than 20 percent the average bull market has lasted a whopping 9.1 years with the cumulative return of 476 percent and if we include the drops of less than 20 percent which are really more like minor hiccups along the way the average bull market still lasts an average of four years with a cumulative return of 129."

"Michael burry believes that free cash flow is totally on sale and ignored while former momentum stocks are coming down but not not far enough value was about to take off for years despite more crash on the way suggesting that the boring staple profitable businesses will be the ones to outperform in the short term."

"Oppenheimer believe that we're already at that point and what is likely an extreme oversold condition in the stock market could become a catalyst for a modest rally before the year's end."

"the housing market is also seeing a lot of attention with many animals believing that the hardest hit markets could see a decline of 20 throughout the next year especially as home builder confidence tanks."

"I think the main focus for everyone should simply be to stay employed and do your best to maximize your income come as much as possible over the next one to two years that way even if the market does drop you're gonna have the resources available to you to take advantage of those lower prices."