Posted 8/16/2023, 7:11:00 PM

Michael Burry, of 'Big Short' fame, just bet $1.6 billion on a stock market crash

Michael Burry, the investor famous for predicting the 2008 collapse of the housing market, has bet over $1.6 billion on a Wall Street crash by buying put options against the S&P 500 and Nasdaq 100.

cnn.com

Relevant topic timeline:

8/28/2023

Warren Buffett may be bracing for a recession – and Michael Burry's latest big short is a 'good move,' says top economist Steve Hanke

Warren Buffett and Michael Burry are preparing for a market downturn and recession by selling stocks and increasing their cash holdings, according to economist Steve Hanke. Berkshire Hathaway sold an impressive $8 billion of stocks in Q2 and added to its cash pile, while Burry's Scion firm placed bets against the S&P 500 and Nasdaq-100 valued at $1.6 billion.

9/12/2023

Burry's Bubble Bursts as S&P Soars Despite Doom Calls

Investors would have been better off buying the S&P 500 instead of adjusting their portfolios in response to Michael Burry's stock-market warning tweets, as the index had an average 6-month annualized gain of 34% following a selection of Burry's tweets from 2019 to 2023, according to Charlie Bilello, chief market strategist at Creative Planning.