Michael Burry, Jeremy Grantham, and other top investors are predicting an epic market crash. Here are their gravest warnings so far.

Michael Burry against a promotional backdrop for the movie "The Big Short."
Michael Burry.

  • Michael Burry, Jeremy Grantham, and other experts are predicting an epic market crash.
  • Jeffrey Gundlach, Leon Cooperman, and Stanley Druckenmiller expect a downturn too.
  • Here are the gravest warnings so far from eight top investors and commentators.
  • See more stories on Insider’s business page.

Michael Burry and Jeremy Grantham are bracing for a devastating crash across financial markets. They’re far from the only experts to warn that rampant speculation fueled by government stimulus programs can’t shore up asset prices forever.

The billionaire investors Leon Cooperman, Stanley Druckenmiller, and Jeffrey Gundlach have also sounded the alarm. The same is true for the “Shark Tank” star Kevin O’Leary, the market prophet Gary Shilling, and the “Rich Dad Poor Dad” author Robert Kiyosaki.

Here are the most striking warnings from these 8 market experts:

Michael Burry

Michael Burry against a gray promotional backdrop for the movie "The Big Short."
Michael Burry.

Burry in June described the markets as the “greatest speculative bubble of all time in all things” and said retail investors were buying into the hype around meme stocks and cryptocurrencies before the “mother of all crashes.”

Earlier this year, the investor of “The Big Short” fame, who runs Scion Asset Management, pointed to Tesla, GameStop, bitcoin, dogecoin, Robinhood, and the red-hot US housing market as signs of speculative excess.

Read more: Goldman Sachs says buy these 20 stocks that have the most upside potential right now — including 5 set to surge by at least 50%

Jeremy Grantham

Jeremy Grantham against a blurry background.
Jeremy Grantham.

Grantham in January said the market was a “fully fledged epic bubble” and described it as the “real McCoy.”

“When you have reached this level of obvious super-enthusiasm, the bubble has always, without exception, broken in the next few months, not a few years,” the legendary investor and GMO cofounder said.

“We will have to live, potentially, possibly, with the biggest loss of perceived value from assets that we have ever seen,” Grantham added.

Leon Cooperman

Leon Cooperman holding his glasses up to his right temple.
Leon Cooperman.

Cooperman expressed deep concerns about financial markets in May.

“Everything I look at would suggest caution, intermediate to long term, would be the rule of the day,” the billionaire investor and Omega Advisors boss said. “When this market has a reason to go down, it’s going to go down so fast your head’s going to spin.”

But Cooperman described himself as a “fully invested bear” because factors that typically cause bear markets — rising inflation, recession fears, a hostile Federal Reserve — weren’t present.

Read more: How to mine doge: An 18-year-old TikTok influencer shares his process for earning crypto without directly buying via a $700 rig — and explains how it works for other altcoins including litecoin

Stanley Druckenmiller

Stanley Druckenmiller speaking and gesturing against a black-and-orange background.
Stanley Druckenmiller.

Druckenmiller said in May that the bull market reminded him of the dot-com boom, but he cautioned that asset prices could continue rising for a while.

“I have no doubt that we are in a raging mania in all assets,” the billionaire investor and Duquesne Family Office chief said. “I also have no doubt that I don’t have a clue when that’s going to end.

“I knew we were in a raging mania in ’99, but it kept going on, and if you had shorted the tech stocks in mid-’99, you were out of business by the end of the year,” Druckenmiller added.

The investor indicated he would pull his cash out of equities in a matter of months.

“I will be surprised if we’re not out of the stock market by the end of the year, just because the bubbles can’t last that long,” he said.

Jeffrey Gundlach

Jeff Gundlach speaking against a black background.
Jeffrey Gundlach.

Equities are undeniably expensive, Gundlach said in March.

The billionaire investor and DoubleLine Capital boss said that claiming the stock market was “anything other than very overvalued versus history” was “just to be ignorant of all the metrics of valuation.” He predicted that stocks would fall by upwards of 15% when the downturn comes.

Gundlach, known as the “bond king,” predicted that the retail investors who had piled into meme stocks and other speculative assets wouldn’t stick around once prices started dropping.

“We’ll have a tremendous unwind of a lot of the money that thinks that the stock market is a one-way thing,” he said.

Read more: Famed investor Michael Burry is predicting the ‘mother of all crashes’. Here’s what 9 other key ‘Big Short’ players are doing now.

Kevin O’Leary

Kevin O'Leary speaking and pointing on "Shark Tank."
Kevin O’Leary.

O’Leary said in April that stocks would eventually crumble, but he framed the downturn as an educational opportunity for rookie investors.

“Buying the dip is more rock-and-roll, but what invariably happens is you go through a massive correction and you learn a very important lesson,” the “Shark Tank” star and O’Leary Funds chief said.

“The generation that is trading right now has never gone through a sustained correction. It’s coming — I don’t know when, I don’t know what’ll trigger it, but they will learn their lesson,” he continued.

“If you have a lot of leverage on, it’s a hell of a lesson because you end up in a negative net-worth position,” O’Leary added. “But you do learn from it.”

Robert Kiyosaki

Robert Kiyosaki against a green background.
Robert Kiyosaki.

Kiyosaki tweeted in June that he was expecting the greatest market crash ever.

“Biggest bubble in world history getting bigger,” the personal-finance guru and author of “Rich Dad Poor Dad” said. “Biggest crash in world history coming.”

Kiyosaki has accused the Federal Reserve of overstimulating markets and devaluing the dollar. He’s advised investors to prepare for the downturn by stocking up on precious metals and cryptocurrencies.

“ARE YOU READY?” he tweeted in April. “Boom, Bust, Mania, Crash, Depression. Mania in markets today. Prepare for biggest crash, depression in world history. What will Fed do? Print more money? Save more gold, silver, bitcoin.”

Gary Shilling

Gary Shilling against a yellow-and-orange background.
Gary Shilling.

Shilling predicted in April that financial markets would nosedive, but he declined to hazard a guess at when the crash would arrive.

“I’m not making any firm prediction as to when this thing is going to collapse,” the veteran forecaster and president of A. Gary Shilling & Co. said.

“Speculations outrun any logic and that’s probably going to be true of this one,” Shilling continued. “But at some point, boy, there’s going to be a lot of blood on the floor.”

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Market prophet Gary Shilling predicts stocks and cryptocurrencies will crash, blasts the Fed, and warns against speculating in a new interview. Here are the 10 best quotes.

gary shilling
Gary Shilling.

  • Gary Shilling said stocks and cryptocurrencies are overheated and bound to crash.
  • The veteran forecaster blamed stimulus measures for ballooning asset prices.
  • Shilling dismissed inflation fears and advised investors to resist speculating.
  • See more stories on Insider’s business page.

Gary Shilling warned of rampant speculation in stocks and cryptocurrencies, and predicted a painful end for those involved, in a RealVision interview released this week.

The president of A. Gary Shilling & Co – who has called several previous crashes – also accused the Federal Reserve and Treasury of pumping up asset prices, dismissed fears of higher inflation, and urged investors to resist joining the buying frenzy.

Here are Shilling’s 10 best quotes, lightly edited and condensed for clarity:

1. “The consensus view is that the economy is going to open very rapidly, inflation is going to come roaring back, and interest rates are going through the roof. That is way overdone. We are in a low-inflation, if not deflationary era.” – highlighting that China and other countries produce more than they consume, fueling a global supply glut that depresses prices.

2. “The money pumped out by the Fed and all the fiscal stimulus hasn’t gone into spending, it’s gone into savings and asset inflation. It’s really responsible for things like dogecoin and bitcoin and other cryptocurrencies, and all these speculations. It’s pushed stocks to unbelievable highs in relation to earnings, in relation to anything else, and made them very overpriced. Now, that doesn’t mean that I want to be short stocks right now, because with speculations, you never know how far they’re going to go. They leave the realm of any fundamentals, they’re off in the wild blue yonder.”

3. “There’s too much money floating around, and people don’t know what else to do with it. The Federal Reserve can’t be oblivious to what they’re doing. I know that they’re very honest public servants, but you’d almost think that these guys have a vested interest in pushing up stocks and fostering speculation. At some point, you would think that they’ve got to exercise more caution.”

4. “Until somebody blows the whistle, and that normally is the Fed, there’s no real end to this speculative climate. It just gets more and more extreme. It’s like the sock-puppet thing we saw back in the dot-com era. Absolutely no logic to the thing, but everybody’s having a wonderful time as long as it lasts.”

5. “If things start to unfold as we expect, and we get a big sell-off in equities that takes a lot of these speculations with it, we’ll have an opportunity to make some serious money.”

6. “When we got to the point that the only things that people wanted were gimmick cameras (Polaroid), motorhomes (Winnebago), and amusement parks (Disney), those are the outward flourishes, not the guts of the economy. People were rejecting the basic economy, saying there’s something wrong, or they’re into speculation. There are many similarities between then and now.” – comparing the current excitement around hot stocks with the hype that surrounded the “Nifty Fifty” stocks in the 1960s and 1970s.

7. “How could this end? One possibility is that we wake up tomorrow and find some major financial institution has bit the dust. We had this recently with Archegos, but we can have something like that on a larger scale that just touches off the collapse. You go back to the Tulipmania in Holland in the 1600s, the South Sea Bubble in England in the 1700s – they got to the point where there was a tiny trigger and wham, they all collapsed.”

8. “I’m not making any firm prediction as to when this thing is going to collapse. Speculations outrun any logic and that’s probably going to be true of this one. But at some point, boy, there’s going to be a lot of blood on the floor.”

9. “Back in the day, we all wore suits. I would buy two or three new suits a year, not because they went out of style, but because I wore them out. If that’s what commuting does to the suit, what’s it done to the guy inside the suit?” – predicting the pandemic will permanently alter work habits because many people have realized they dislike commuting.

10. “We had a wake-up call with the pandemic. It’s time to save money, to be cautious, and certainly investment-wise, to avoid speculation. It’s very hard when everybody is making money and you feel, ‘Oh, am I missing out? There’s this garage mechanic, who is no longer fixing cars because he’s making so much money in GameStop. I’m a stupid idiot, why aren’t I involved?’ Well, there are times where you really have to just pluck up your courage and say, ‘No, I don’t want to be involved.'”

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