If you haven’t seen the movie The Big Short, go see it. Christian Bale (left) plays Michael Burry in Adam McKay’s adaptation of Michael Lewis’s book about the 2008 financial crisis. Burry was one of the hedge fund managers me and my team knew well. He and others helped us to better understand the approaching sub-prime crisis. I wrote about the issue frequently back then.
Nobody knew when it would happen nor the depth of the break, but we were pretty sure it would be big. As it turned out, it was far worse than we anticipated. I never imagined the near collapse of the financial system. I should have gone short the sub-prime trade I was well aware of, or shorted Fannie Mae, or the mortgage lenders or the banks.
Back in 2007, most of the emails I received were not favorable. Steve, you’re way too bearish. It turned out I wasn’t bearish enough.
Today, it feels to me much like it did in 2006 and 2007. However, this time around I’m looking through a lens of opportunity — not worry, not fear.
The current opinions and forecasts expressed herein are solely those of Steve Blumenthal and are subject to change. They do not represent the opinions of CMG. CMGs trading strategies are quantitative and may hold a position that at any given time does not reflect Steve’s forecasts. Steve’s opinions and forecasts may not actually come to pass. Information on this site should not be used as a recommendation to buy or sell any investment product or strategy.