Should You Care if Michael Burry Thinks the Market Is Going Down?
Michael Burry, the hedge fund manager whose bet against the housing market was famously chronicled in The Big Short, has made the headlines again. He has ... gasp ... turned bearish on this year's rally, making some sizable investments that will reward him if the market goes down.
Here's the thing: Burry is market timing, which is a tricky business that most investors should avoid. And he could be wrong. If the news of Burry's bearish investments has you wondering if you should follow him, there are a lot of issues to examine first. Here's what you should consider before making any decisions based on what a famous investor is or isn't doing.
When it comes to Wall Street, there's always a bunch of stuff going on. Most of it is pretty mundane and boring. And yet there's an entire media industry around reporting that news, from newspapers to websites to cable news stations. The media largely gets paid for attracting eyeballs to the advertising that lives around the content it creates.
Source Fool.com
