Burry’s Scion Asset Management, led by renowned investor Michael Burry of “The Big Short” fame, has made significant bearish bets against the stock market. As the market enters a historically weak period in August and September, the firm has purchased put options worth a notional $1.6 billion against the SPDR S&P 500 ETF (SPY) and the Invesco QQQ ETF (QQQ), signaling a potential steeper decline.
Michael Burry, known for his past contrarian financial bets, gained fame for accurately predicting the 2008 housing market crash. His current move against the stock market is notable as he is historically active on social media, using it to express his opinions and back them up with investments.
Scion Asset Management’s second-quarter filing with the SEC revealed that Burry also made new investments during Q2, including consumer-focused stocks like Expedia, MGM Resorts, and CVS Health, as well as energy sector holdings. He reduced exposure to China by selling all shares of Alibaba and JD.com, and exited several regional bank stocks.
While Burry’s actions attract attention, everyday investors should consider their own long-term goals. It’s important to remember that Burry’s strategy may not be suitable for most individuals, and a focus on quality stocks held for the long term remains a proven method for generating positive returns.
