Report: ‘Big Short’ Investor Michael Burry Bets $1.6 Billion on Stock Market Crash

Wall Street, Wiki
Michael Burry, the investor who predicted the 2008 housing crash and was the subject of the “Big Short” movie, has bet more than $1.6 billion on a Wall Street crash. Burry is using more than 90% of his portfolio to bet on a market downturn, according to filings. Warren Buffett has been selling rather than buying. Economics professor Steve Hanke said, “The money supply is fuel for the economy, and it has been contracting over the last year. Now, the rate of contraction is -3.6%/yr., something we have not seen since 1938. Following significant changes in the money supply, the economy changes course with a lag of 6-18 months. At present, the economy is running on fumes and a 2024 recession is inevitable.”

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Michael Burry of “Big Short” fame is betting more than 90% of his portfolio on a stock market crash, according to the latest SEC filings.

From CNN, “Michael Burry, of ‘Big Short’ fame, just bet $1.6 billion on a stock market crash”:

Michael Burry, the “Big Short” 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.

[…] The S&P 500 and Nasdaq 100 have both notched big gains so far this year. They’re up nearly 16% and 38%, respectively.

From Newsweek, “Warren Buffett Selling $8 Billion Worth of Stock Raises Economy Crash Fears”:

Warren Buffett’s firm Berkshire Hathaway sold a net $8 billion of stock between April and June in a move that suggests the U.S. economy is not out of the doldrums yet, despite consistently slower inflation.

According to Berkshire Hathaway’s second-quarter earnings, released earlier this month, the company sold close to $13 billion worth of shares and bought less than $5 billion. The Nebraska-based investor’s company spent only $1.4 billion in buybacks—a modest sum for the stock market and much less than the $4 billion it spent in the first quarter.

[…] Buffett “has always acted as a voice of confidence for markets during turbulent times,” David Nicholas, president and founder of Nicholas Wealth Management, previously told Newsweek, commenting on Berkshire Hathaway’s first-quarter stock sales. “But this marks a significant departure in his tone and positioning towards U.S. equities.”

As a result of its stock sales in the second quarter, Berkshire Hathaway fattened its cash pile by 13 percent to reach $147 billion between April and June.

“When a recession is right around the corner, Buffett knows that cash is king, particularly when he can earn a decent rate of interest on it,” Steve H. Hanke, a professor of applied economics at Johns Hopkins University, previously told Newsweek.

“Apparently, Buffett anticipates that the U.S. economy is headed for troubled waters. I think he is correct,” Hanke, who served on President Ronald Reagan’s Council of Economic Advisers, told Newsweek on Wednesday.

“The money supply is fuel for the economy, and it has been contracting over the last year. Now, the rate of contraction is -3.6%/yr., something we have not seen since 1938. Following significant changes in the money supply, the economy changes course with a lag of 6-18 months. At present, the economy is running on fumes and a 2024 recession is inevitable.”

[…] So what could Buffett see threatening the U.S. economy that others don’t?

In May, Nicholas told Newsweek that “the three big risks for Buffett were China, the U.S. banking sector and commercial real estate. These are very real risks for economic growth and just one would be enough to derail growth, yet we are dealing with all three at the same time.”

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Milton Farrow
Milton Farrow
9 months ago

BANK AMERICA IS A TICKING TIME BOMB- THE SHORTS WILL WIPE THE FLOOR WITH STUPID GAMBLERS WHO REFUSE TO REALIZE THE MARKET
IS RIGGED-

Ed
Ed
9 months ago

Not since 1938 ? Hmmm, good ol’ FDR had problems with HIS economy too. Know how he ‘got things going ?’ He made sure we / USA got into a friggin’ world war ! ! !

Jimbo
Jimbo
9 months ago

Check out Jerome Corsi’s latest 2023 book: “How the Coming Global Crash Will Create a Historic Gold Rush” and combine this with Texas’ government “transactional gold” initiative, recognizing that the BRICS nations are soon to be announcing a breakaway from the US”$” as world reserve currency. Couple that with the fact the US Constitution permits states to issue gold and silver coin as (only) “legal tender.” This effectively takes those two metals out of just commodity status....Texas will soon be issuing “debit cards” backed by purchaser owned, legal Au/Ag tender, which are transactionable for store item purchasing when converted to… Read more »

Jimbo
Jimbo
9 months ago
Reply to  Jimbo

Beauty of the Texas initiative is an owner of state issued, physical gold/silver legal tender – accessed both ways via state debit card (not processed by a credit card company) – essentially becomes his own “middle-man.” Nominal fees apply to transactions. Assets protected against inflation. Cash outs into paper fiat also their option.
Note an owner never actually holds any physical gold or silver tender (coins, bullion) in his pocket. Sorry FDR, your rules won’t apply here.

cmdrsocal
cmdrsocal
9 months ago

Burry is rolling the dice again like he did with Tesla. The USD will remain the safe haven because everyone else is worse. Evergreen just filed for bankruptcy. Russia is a mouse being smacked around by the cat NATO. Brazil is a backwards 2nd world dump. BRICS is the establishment with its top people from IMF, WEF, Gates Foundation. BRICS originated in Goldman Sachs. The US economy will collapse if and when the establishment says so and Burry is not an insider.

Sister NG
Sister NG
6 months ago

When did he buy the puts and when do the puts expire?