Are we witnessing history repeating itself? Michael Burry’s recent investments spark talks of a market crash.
- admin_hrv2xlob
- March 21, 2024
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Famous investor Michael Burry, known for his role in “The Big Short,” has reportedly taken bearish positions against the S&P 500 and Nasdaq 100 Index, according to recent securities filings. His Scion Asset Management has purchased put options worth $739 million against the Invesco QQQ Trust ETF and separate put options worth $886 million against the SPDR S&P 500 ETF. Put options allow for selling shares at a fixed price in the future and are often used to express a pessimistic view. This move has garnered attention, with the Michael Burry Stock Tracker on social media highlighting his substantial short position against the S&P 500 and Nasdaq-100 Index, representing around 93% of his entire portfolio.
Michael Burry gained fame for accurately predicting the housing bubble collapse in 2008. This recent bearish stance has caught the attention of crypto enthusiasts who view Bitcoin as a potential hedge in the event of a market crash. However, some have questioned the relevance of this information, as it may be outdated, originating from a June 30 report. It is possible that Burry made these trades earlier and may have already exited them.
Apart from his bearish positions, Scion Asset Management has also liquidated holdings in Chinese e-commerce firms JD.com and Alibaba Group, as well as regional banks PacWest and Western Alliance Bancorp. In contrast, the firm has increased its stake in RealReal Inc and added new positions in iHeartMedia, HanesBrands, Warner Bros. Discovery, and iShares MSCI Japan ETF. These moves have led to speculation regarding Burry’s overall market stance, particularly his potential bets against the market through put options on S&P 500 and Nasdaq 100 ETFs.
It is crucial to note that these filings provide a backward-looking perspective on holdings and may not reflect current positions. Burry is known for frequently turning over his portfolio, and these filings offer insights into the activities of institutional investors. Therefore, it is important for investors to gather complete and accurate information before drawing conclusions.
Michael Burry’s actions are closely monitored due to his historical influence, but it is essential for investors to exercise caution and conduct thorough research before making any investment decisions.