If the name ‘Michael Burry’ rings a bell it’s because he’s the character Christian Bale plays in ‘The Big Short’, which is a pretty good movie that explains a complicated situation (the worldwide economic collapse in 2007-2008) in a way that dummies like me and you can understand.
Back then, Michael Burry made himself and his clients hundreds of millions of dollars when the housing market collapsed, and it seems like he’s banking on doing the same with the next financial crisis, having reportedly just shorted the stock market to the tune of $1.6bn.
As explained by The Examiner:
Investor Michael Burry has taken a huge short against the U.S. stock market, to the tune of more than $1.6 billion.
Burry, who predicted the subprime mortgage crisis of the 2000s, bought nearly $890 million in puts against the SPDR S&P 500 ETF, which tracks the overall stock market. Through his hedge fund Scion Asset Management, he also bought some $740 million in puts against an ETF that tracks the Nasdaq’s 100 largest nonfinance companies — essentially, a short against the tech sector.
The massive short positions were revealed on Monday in a filing with the Securities and Exchange Commission. More than 93% of Burry’s entire portfolio is betting against the stock market, and in essence, the health of the economy.
Welp, that ‘s worrying… if he’s right, that is.
Michael Burry places a huge leveraged short position on the stock market with put options.
The Big Short Version 2.0 😳 pic.twitter.com/8SHtZ0r4V9
— Wall Street Silver (@WallStreetSilv) August 14, 2023
From what I’ve seen online, people aren’t too convinced that Michael Burry is on the money this time. Apparently he’s predicted this sort of thing in recent years too and it hasn’t ended up happening, and he’ll block people on Twitter who call him out on that.
That being said, I’ve got no idea how the market is just skyrocketing upwards with so many issues in the world around expenses, overvalued assets etc. So who knows what the hell is going on? Not me, that’s for sure. And maybe not even Michael Burry. Should be interesting to follow, either way…
To meet the ‘Hound of Hounslow’, the man who was spared jail after triggering a $1 trillion stock market collapse, click HERE. One of our own!
