Michael Burry Just Bet Against the Entire Stock Market

Michael Burry's latest trades have been revealed in SEC Filings.

Michael Burry, known for predicting the 2008 housing market crash, has shifted his investment strategy, selling U.S. stocks like RealReal and American Coastal Insurance while buying Chinese tech giants JD.com, Alibaba, and Baidu. His latest SEC filings reveal a focus on Chinese markets, possibly linked to recent economic stimulus efforts by China, while reducing exposure to the U.S. market. This aligns with concerns over a potential bubble in passive investing and the rising concentration of market value in a few large tech companies within the S&P 500.

Passive investing now dominates U.S. markets, reducing price discovery and inflating stock values artificially. Concentration risk in the S&P 500 has reached levels higher than during the dot-com bubble, with 10 companies accounting for a third of its value. Burry’s moves suggest he is hedging against these risks, which could lead to significant volatility in both U.S. and global markets. Diversification and long-term investing strategies remain critical for mitigating risks tied to these trends.

I am not a financial or investment advisor. Everything in this video is for entertainment purposes only. Links above include affiliate commission or referrals, and I receive compensation from partnering websites. The video is accurate as of the posting date but may not be accurate in the future.

[SAGEMAMe]

Dude is legendary. Has predicted 47 of the last 3 crashes.

[bbrad]

Michael burry has predicted a market crash about as many times as youtubers have made a video about him.

[pradbourne]

Michael burry sees more bubbles than I have in my bath.

[JamesIdentity]

This is old news, clickbait title and the entire video is basically plagiarizing other channels like New Money. Not even adding any information just copying exactly what they say. Lazy.

[sinfulxchangez]

He has been betting against the market for 4 years... good grief.

[NeerajKumar-eqy]

He made a bet last year, it did not work out

[philippjulien]

Charlie Munger died in November 2023. RIP Charlie. His thoughts about index funds driving up prices - a regular reminder appreciated.

[robdonegan]

If you happen to have a million dollars right now, i say just put it in treasury bonds at 4.4 percent. That gets you $44, 000 a year with little risk. Now just wait till the market drops and the throw it in an index fund. Everything in the Market right now is way overrpriced, it will eventually drop. When thay happens jump back in. Until then you could still make $44, 000 a year guaranteed.

[parkerbohnn]

I'm ready for the 100 year bear and a retest of the 1987 lows. The second shoe is yet to drop from the '87 crash

[anandp]

I am 75%+ in Chinese stocks. Did not start due to burry but we both have almost the same makeup of stocks. I have few more like Anta, Haidilao and Ping An Insurance. China is cheap, that’s obvious at least for me. What makes them stand out is their per capita income and savings growth. Exports also growing. Surplus growing. Plus currency is totally undervalued. They will do a Japan sometime. When they do, they will go to buy the world. That is far fetched but it is inevitable.

[kevinthomson]

Stocks are not safe, to think they are is a mistake. The closer to retirement the bigger the risk.

[Cjklim]

He’s not the only one buying Chinese stocks… they have a price to earnings ratio thats much more reasonable than us stocks

[snakeindigo]

Index funds and "passive investing" are absolutely not a problem. Huge money printing during the pandemic has caused the bubble. People stayed in employment and kept investing into their pensions.

[coverfactory]

why would the magnificent 7 run into trouble in era digitalis?

[srercrcr]

Just do as Buffett is cash, alot of patience, and get ready for the opportunity of the century.

[sloth_in_socks]

Being wrong and being too early are the same things

[davidtunstall]

He's been betting against the market for this entire bull run, got lucky the first time, underestimated the power of QE and mass money printing post Covid. The US printed 25% of it's entire debt since it became a country in just the past 4 years, the market is only going up from here for years to come.

[paulking]

He also shorted early 2023 then had to apologize to his followers who lost money.
But his strategy wins more than he loses, so can't argue with his methods.

[theDudemanok]

This is a great conversation. A few counter-arguments;

1. Everyday someone holds a stock, they choose to buy that stock. If Granny Smith company stock had risen by 50, and its inclusion on the S&P was not based on fundamentals, an insider could have sold.

2. In 1930, American Sugar was the biggest company on the S&P 500. Exxon was the biggest in 2007. The index will survive replacements. It always has—Nvidia was-number-i-don't-know-what in 2015.

3. Security selection isn't the reason major investors are skeptical of the market; it is the macro picture. Replacing an equity ETF for another investment that has an active strategy or an asset class that has market risk doesn't reduce your overall risk.

[ralphjessee]

The stock market is a fairly efficient tool to insert money into the economy and bonds do the opposite, though add a measured amount.
Where do you think we are? Is it in the national interest to add money or subtract?