New Delhi. ‘Big short’ investor Michael Burry, who became famous for correctly predicting the collapse of the housing market in 2008, has bet more than $1.6 billion on Wall Street crashing. He has now predicted that there will be a Wall Street crash by the end of this year. More than 90 percent are betting on the bearish recession.
Securities Exchange Commission filings released on Monday show that they have taken out negative options on the S&P 500 and the Nasdaq 100 – both of which are representative of the US economy at large. It has been reported by CNN that Michael Bury is using more than 90 percent of his portfolio to bet on the downturn in the market. His fund, Scion Asset Management, had bought a bigger holding in put options than both the stock-market indices. Put options give the right to sell an asset at a specified price.
Michael Bury bought $866 million (£679 million) in put options against a fund tracking the S&P 500, and $739 million (£580 million) in put options against a fund tracking the Nasdaq 100. His bet comes as the S&P 500 is up 16 percent and the Nasdaq 100 is up 38 percent this year. Bury became famous for his market movements in the mid-2000s, when he bet against the housing market during the events that led to the worldwide recession.
However, it seems he doesn’t always get it right. In January, he tweeted the word “sell” to his 1.4 million followers, but then in March he wrote “I was wrong to sell”. As of August 17, his account appears to be inactive with no tweets, as he removed his activity in the stand against Elon Musk. ‘The Big Short’ was initially a bestselling book by Michael Lewis, before it was adapted into a film, which also starred Steve Carell, Ryan Gosling and Brad Pitt.
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Tags: New york news, Stock market, US News, World news
FIRST PUBLISHED : August 20, 2023, 00:51 IST
