What do you think about Michael Burry's 2021 stock market crash prediction?

The stock market has been pumped up with historically low interest rates and a Federal Reserve adopting a new quasi-mandate of never letting the financial market crash again.

But, with inflation rearing its ugly head, the Fed has two options: raise interest rates to stop it or curtail this unlimited quantitative easing program and risk a steep correction or severe crash.

You saw how the markets reacted because the Fed moved up its projected rate hikes to 2023 rather than 2024. Investors are frightened because this easy money cannot be utilized forever.

Meanwhile, yes, the cryptocurrency market was bound to go through a sharp downturn. It was a bubble waiting to pop, but it turns out that it was mostly because of China and its crackdown on the industry that bitcoin and other cryptos are falling.

It is going to be a tough market to crack for investors who are only accustomed to stocks going up.

His statement might actually mean that there will be clearance sales and stocks will rebound, as they naturally do from time to time. However, statements like these creates uncertainty. I will advise you to buy stocks that have a hedge against inflation for now e.g Gold, Real Estate Investment Trusts, Commodities etc.