Michael Burry has been making headlines this year for his bearish bets on the stock market. In the second quarter of 2023, he disclosed that his hedge fund, Scion Asset Management, had purchased $1.6 billion worth of put options against the S&P 500 and Nasdaq-100 ETFs. These options give Burry the right to sell the ETFs at a certain price in the future, and they would profit if the stock market falls.

In addition to these broad market bets, Burry has also been shorting individual stocks. In the second quarter, he sold his holdings in JD.Com, Alibaba, and Zoom Video Communications. He also opened new short positions in several regional banks, including First Republic Bank, Huntington Bancorp, and Western Alliance Bancorporation.

Burry’s bearish stance is not surprising given his track record. He is best known for his prescient bets against the subprime mortgage market in the lead-up to the 2008 financial crisis. His insights were chronicled in the book and film “The Big Short.”

More recently, Burry has been critical of the Federal Reserve’s easy monetary policy, which he believes has inflated asset prices and created a bubble that is likely to burst. He has also warned about the dangers of inflation, which he believes is eroding the value of the dollar and making it harder for people to save for retirement.

Whether Burry is right about the market this time around remains to be seen. However, his track record suggests that his bearish bets should be taken seriously. Investors who are concerned about the possibility of a market downturn should consider following Burry’s lead and hedging their portfolios.

Michael Burry’s short positions on the stock market have reportedly accumulated estimated losses of 40% since their opening in August 2023. This translates to a significant loss for Burry and his hedge fund, Scion Asset Management.

The exact amount of Burry’s losses is not publicly known, but analysts estimate that they could be in the hundreds of millions of dollars. This is because Burry made large bets against the market, using put options that give him the right to sell certain ETFs at a certain price in the future. If the stock market falls, Burry will profit from these options. However, if the market rises, he will lose money.

In November 2023, Burry reportedly closed out his $1.6 billion bet against the S&P 500 and Nasdaq-100 ETFs. This suggests that he may have been concerned about the size of his losses and decided to cut his losses.

Despite the recent losses, Burry is still considered to be a highly respected investor. He is known for his contrarian views and his willingness to bet against the market. He is also a very successful investor, having made a fortune by betting against the subprime mortgage market in the lead-up to the 2008 financial crisis.

Only time will tell whether Burry’s bearish bets on the stock market will be successful this time around. However, his track record suggests that he is a shrewd investor who should be taken seriously.

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