Michael Burry: Everyone Will Be Terrified On September 20th, I Am Betting All In On Market Crash

Michael Burry: Everyone Will Be Terrified On September 20th, I Am Betting All In On Market Crash

In the last 3 years S&P500 has provided 25% cumulative return while Nasdaq has provided 18% return. But you would be surprised to know that Michael Burry has earned 186% return on his investments in last 3 years.
It is clearly evident that Michael Burry has a solid and proven track record of beating the market and earning handsome return on his investments.
Many people wonder how Michael Burry can earn this much return on regular basis. Its because Michael Burry plays on both side of the market. He buys when there is opportunity and shorts the market when he anticipates correction or general stock market crash. In this video we will discuss whats the latest Michael Burry trade idea and stock market prediction. And how as retail investors we can earn handsome return on investment just like Michael Burry.
Michael Burry has garnered significant media attention due to his bold bets and stock market predictions. His compelling story was even immortalized in the book and subsequent film "The Big Short," highlighting his astute bet against the market. Burry has consistently displayed superior performance compared to the broader financial markets. Impressively, he achieved an astonishing 186% return on his investments over the past three years alone. This remarkable track record naturally prompts an intriguing query: What factors underlie his decision to once again place a substantial bet against the prospects of the American economy?
In this video, we're diving into the latest moves by famed investor Michael Burry, uncovering his rather bearish outlook on the US stock market. Let's break it down step by step.
Burry, who's gained notoriety for his past successes in predicting market downturns, has recently made some intriguing investment choices. These choices reflect his rather gloomy view of the American stock market's future. But what's caught our attention is his investment portfolio, which consists of a substantial amount – nearly 1.6 billion dollars short on underlying assets– through put options. These options are linked to two major exchange-traded funds: the Spider S&P 500 ETF Trust, commonly known as SPY, and the Invesco QQQ Trust Series 1, known as QQQ.
Now, for those unfamiliar with these terms, SPY and QQQ are like windows into the overall health of the US stock market. They track the performance of the S&P 500 and the Nasdaq 100 indices respectively, giving investors a sense of how things are going in the market. These indices include some of the biggest players across various industries. And here's where Burry's investment strategy gets interesting – he's purchased put options on these ETFs.
But what does that mean? Essentially, Burry's putting his money where his prediction is. By buying put options, he's essentially making a bet that the prices of these ETFs will drop in the coming times. It's a bit like saying, "I think the market's headed for a downturn, and I'm going to make a move that could pay off if things go south."