https://www.kcra.com/amp/article/michael-burry-bi…
NEW YORK —
Michael Burry, the "
" investor who became famous for correctly predicting the epic collapse of the housing market in 2008, has bet more than $1.6 billion on a Wall Street crash.Burry is making his bearish bets against the S&P 500 and Nasdaq 100, according to Security Exchange Commission filings released Monday. Burry's fund, Scion Asset Management, bought $866 million in put options (that's the right to sell an asset at a particular price) against a fund that tracks the S&P 500 and $739 million in put options against a fund that tracks the Nasdaq 100.
Burry is using more than 90% of his portfolio to bet on a market downturn, according to the filings.
Shit. Maybe I should pay off my margin loan before I get fucked.
My man was 1 for 1– should’ve left it at that. This is a major punt.
The $1.6bn figure is the notional value, cost of premium is probably closer to $50m - still sizeable relative to AUM but that $1.6bn figure is a bit misleading
Media deceptively misreporting a figure to make for a more tantalizing headline?
$1.6b definitely misleading but how do you know the estimated premium
Oh wow, that really changes things
Damn, this music video brought me back to MTV days...
We have to remember that he is not the "Bible" of financial predictions. He famously missed on his short-sell of Tesla.
https://www.wsj.com/livecoverage/stock-market-today-dow-jones-08-21-202…
he's still long value, just buying puts against SPY and QQQ, hardly going out on a limb if you look at valuations, but because of the movie he's making headlines
also, spitznagel, famous for making these predictions, actually says in a fortune article that retail investors would do well to just abide by buffett's advice - hold onto your stocks and if you're spooked, hold enough cash to not be spooked about the rest, just ride it up and down (if you look at buffett's portfolio since the beginning of time, he's basically always had 10-30% of the money in cash with the rest in stocks, this is the way for people that can stomach the volatility
paywall free: https://archive.is/SpZUC
original: https://fortune.com/2023/08/05/black-swan-hedge-fund-mark-spitznagel-in…
Thankyou.
Our generation is so fucked man. Boomers got a golden age of tech stocks and all we get is covid, inflation, and a recession every other year 💀. Not to mention stagnant wages and increased competition for literally everything. Hip hip hooray!!!
Struggle is the opportunity to grow in character.
I'd rather have tens of millions of dollars thanks tho
Feel free to give me your money so you can struggle through life and grow as a person.
the more recessions the more assets you can accumulate, so that you can ball in a few years when SPY is high af from all the AI impact
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