By Adam Sharp Dr. Michael Burry made a fortune shorting the real estate bubble in 2008. His bets against the subprime mortgage market were made famous in The Big Short, a bestselling book by Michael Lewis, which was later turned into a Hollywood movie starring Brad Pitt and Steve Carell.
Now Burry’s warning about another crash, which he says will be triggered by the rise of passive investing (buying very broad stock indexes like the S&P 500).
Passive index funds, led by the S&P 500 or the Russell 2000, now make up 45% of U.S. stock funds according to Morningstar via CNBC.
The other 55%, actively …read more