‘Big Short’ Investor Michael Burry Dumps All Stocks but One After Predicting Market Crash – Featured Bitcoin News

Hedge fund manager Michael Burry’s Scion Asset Management dumped all but one of its stock holdings in the second quarter, according to the firm’s filing with the U.S. Securities and Exchange Commission (SEC). Burry was famous for predicting the 2008 financial crises and warning of winter.

Michael Burry Sold All Stocks But One

Michael Burry’s investment firm Scion Asset Management dumped all of its stock holdings except one in the second quarter, the company’s disclosure filing with the U.S. Securities and Exchange Commission (SEC) Monday shows.

Burry is most well-known for his ability to profit and foresee the U.S. subprime crisis in mortgage lending that took place between 2007 and 2010. He is profiled in “The Big Short,” a book by Michael Lewis about the mortgage crisis, which was made into a movie starring Christian Bale.

Scion ended its long position in 11 U.S. stocks during the second quarter. These included Google parent company Alphabet and Facebook parent company Meta Platforms. At the close of the quarter, the asset management company had $165 million in U.S. stocks.

Burry’s firm ended the second quarter with just one stock holding. Scion purchased 501,360 shares in Geo Group Inc. (NYSE : GEO). Its website states that the Florida-based company provides a wide range of services including post-release support, community-based programs and enhanced in-custody rehabilitation.

Twitter has warned of market crashes by the Big Short investor. In a tweet, he said that Sunday’s rally in Nasdaq (tech-heavy) was unlikely to last long. He tweeted:

Can’t shake that silly pre-Enron, pre-9/11, pre-Worldcom feeling.

In another tweet, he opined: “Contrary to the internet and the Twittersphere, there have been bear market rallies that eclipsed 50% retracement and led to a lower low.” Noting that it “depends [on] how you define a bear rally and/or a cycle,” he listed April 1930, November 1938, June 1946, and November 1968.

Burry further tweeted last week: “Nasdaq a bull market because it is up 20% off its low? Is this possible? After 2000, the Nasdaq did that 7 times as it fell 78% to its 2002 low.”

A different tweet from the Big Short investor stated that winter would soon hit the U.S. Economy, warning about a spike in US consumer debt. “Net consumer credit balances are rising at record rates as consumers choose violence rather than cut back on spending in the face of inflation,” the famous investor wrote, adding:

Do you remember the savings glut? It’s over. Covid helicopter cash taught people to spend again, and it’s addictive. It’s winter.

You think Michael Burry should sell off his entire stock portfolio, except one. Comment below.

Kevin Helms

Kevin, a student of Austrian Economics and a Bitcoin evangelist since 2011, was one of the first to discover Bitcoin. His main interests are in Bitcoin security, open source systems, network effects, cryptography, and intersections between economics, cryptography, and Cryptography.