‘Big Short’ investor Michael Burry warns even the best growth stocks can crash

MarketsInsider/Theron Mohamed/4-22-2022

“‘Remember when Amazon fell 95%?’ he continued, referring to the e-commerce company’s stock plummeting after the dot-com bubble burst. ‘But the Fed? But the Fed didn’t have inflation like this hanging over its head then either,’ the Scion Asset Management boss added.”

USAGOLD note: Burry infers that the Fed might not be able to come riding to the rescue this time around. We post the chart below for those who weren’t around for the dot.com crash and those who were but may have forgotten how aggressive a stock market decline can become. Between 2000 and late 2002, the NASDAQ dropped 78% from peak to trough.

Sources: St. Louis Federal Reserve [FRED], NASDAQ OMX Group