Remember Michael Burry, the man who hit the jackpot by predicting the housing market crash in 2008? Well, he’s back in the spotlight, this time making bold predictions about major stock markets taking a nosedive.
The Big Short Star’s Surprising Move
Michael Burry, the hedge fund guru depicted by Christian Bale in The Big Short, is making waves again. This time, he’s revealed to have invested heavily in options that would pay off if the S&P 500 and Nasdaq 100 indexes tumble.
Burry’s Million-Dollar Bets
Burry isn’t holding back – he’s got a whopping $886 million riding on his negative outlook for the S&P 500. But that’s not all, he’s also putting $738.8 million on the line against the Invesco QQQ Trust ETF, which includes tech giants like Apple, Microsoft, and Tesla.
Putting It All on the Line
Burry’s audacious move means that more than 90% of his company’s investments are geared towards a market downturn. Despite the S&P 500’s 17% climb and the Nasdaq 100’s impressive 39% surge this year, Burry remains convinced of an impending crash.
Unraveling the Mystery
While it’s unclear why Burry has taken such a bearish stance, his history of successful predictions commands attention. He made waves in January with a single word tweet, “Sell,” followed by a hesitant backtrack in March, admitting he was “wrong to say sell.”
The Big Short’s Real-Life Hero
You might remember Burry as one of the key figures in the book-turned-movie, The Big Short, that chronicled the financial crisis. He’s thought to have raked in around $100 million from the housing market crash, alongside stars like Steve Carell, Ryan Gosling, and Brad Pitt.
The Million-Dollar Question
With Burry’s impressive track record and massive bets against the market, investors and analysts alike are left wondering: Is he on the brink of another big win, or is he risking it all in a daring gamble? Only time will tell.
Source Reference : https://news.sky.com/story/the-big-short-investor-michael-burry-bets-1-6bn-on-stock-market-crash-12940826