Famous hedge fund manager and “Big Short” icon Michael Burry just made yet another risky decision. This time, he has established a huge $1.5 billion short position against the market. Whether this is just another of Burry’s brilliant discoveries or a hasty one, the investment world is awash with discussion, debate, and speculative conjecture.
In further detail, Burry has invested $740 million in QQQ Puts and $890 million in SPY Puts. Stunningly, these acquisitions now account for 93% of his total portfolio. It displays Burry’s degree of conviction in his prognosis and is a brave move.
Although his prognosis may prove to be right in the long term, some financial experts think he may have jumped the gun. Michael Burry is not mistaken; in the long run, it will pay off, said prominent crypto analyst Negentropic in response. He is notorious for being early, though. A portion of the financial world agrees that Burry’s anticipatory actions frequently precede real market swings.
When we consider the predicted course of the DXY (U.S. Dollar Index), the issue gets much more fascinating. The general consensus is that a DXY decline, which would raise risk assets, is only a matter of time. However, it’s possible that this projected uptick is only the “final leg up” before the market experiences a significant fall.
Michael Burry has exhibited an unusual ability to interpret the indications and take quick action in the past, even when he was ahead of the curve. His massive short bet on the US housing boom in the middle of the 2000s has now become folklore, and the story was notably told in the film “The Big Short.” But it’s also important to keep in mind that such foresight frequently involves a waiting period and, occasionally, dealing with scepticism.
