Michael Burry, played by Christian Bale in the 2015 film directed by Adam McKay, is said to have bet more than $1.6bn (£1.25bn) on the 2023 crash.
Recently issued SEC filings show that, according to recent SEC filings, Perry’s firm, Sion Asset Management, bought $866 million in bearish put options for an S&P500 fund, and $739 million in bearish put options. In the same options versus another fund that tracks the Nasdaq 100 index.
Bury’s bet comes as the S&P 500 is up 16 percent and the Nasdaq 100 is up 38 percent already this year.
It appears that Bouri is using more than 90 percent of his portfolio to bet on a market downturn.
Turns out his fund, Scion Asset Management, bought large stakes in put options against both stock market indices. Put options give the right to sell an asset at a certain price, i.e. it is a contract that allows the holder of an option to buy the “asset” over a limited amount of time at a pre-agreed price.
On the other hand, against the sunny backdrop of a seemingly bullish stock market, one seasoned analyst sees Perry’s bet on a stock market crash as a losing bet.
“He would be wrong, just as Mike Wilson was wrong,” said Mark Chaiken, founder and CEO of Chaiken Analytics. In reference to the chief equity strategist at Morgan Stanley, who was surprised by the historic rise in stocks this year after previous negative expectations.
Chaiken dismissed the notion that the Perry portfolio update, which used more than 90 percent of it to bet on a market decline, spooked retail traders into selling stocks last week, arguing that his only notable achievement was predicting the housing market crash 15 years ago, which he benefited from. much of it.
In contrast to Perry, Chaiken said the S&P is in a bull market and that it won’t fall not even 10% from its high in late July.
However, it should be noted that Perry has accurately predicted several events in recent years. For example, he warned as early as April 2020 that inflation could become a problem.
And when price growth reached a 40-year high last summer, he correctly predicted that it would decline within months. It also sounded the alarm about the runaway meme stocks and cryptocurrencies before they plummeted last year.
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