Banking

‘Big Short’ Burry sells all but a single stock on dead cat bounce fears

According to his fund’s most recent 13-F filing (15 August), all that remains is a long position in GEO Group valued at $3.3m.

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This is a marked change from his May 16 disclosure, in which he revealed stakes in 12 firms including technology stocks Alphabet and Meta, media company Discovery and pharmaceutical group Bristol-Myers Squibb, alongside a single short position in Apple.

Burry has been increasingly vocal in recent weeks about his unease with the current market recovery.

Referencing “The Silliness”, Burry has in several tweets pointed to dead cat bounces that have preceded market lows after 1929, 1968, 2000 and 2008, suggesting the current rally is unsustainable.

“Cannot shake that silly pre-Enron, pre-9/11, pre-WorldCom feeling,” he wrote in one tweet on 14 August under the name Cassandra, an alias he has taken to using on the social media platform in reference to the Greek myth of a priestess who made true prophecies but would never be believed.

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On 30 June, he wrote: “Adjusted for inflation, 2022 first half S&P 500 down 25-26%, and Nasdaq down 34-35%, Bitcoin down 64-65%. That was multiple compression. Next up, earnings compression.

“So, maybe halfway there.”

Recent market commentary from the BlackRock Investment Institute echoed these concerns, declaring the rally to be unsustainable, with particular weight given to earnings pressure.

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