Michael Burry Makes $1.6 Billion Bet On BLACK MONDAY Type Crash (Explained)

[hersdera]

I feel investors should be focusing on under-the-radar stocks, and considering the current rollercoaster nature of the stock market, Because 35% of my $270k portfolio comprises of plummeting stocks which were once revered and i don't know where to go here out of devastation.

[cloudyblaze]

No guarantee that the days will be before or after a bear market, also no guarantee that they will be consecutive or at least all in the same couple of months or a year or two. Also “the best” days are during the times with a lot of market volatility, where the market may also go downwards. Please just stop with the “if you miss the X best days in…”

[Aziz__]

Every crash/collapse brings with it an equivalent market chance if you are early informed and equipped, I've seen folks amass up to $1m amid crisis, and even pull it off easily in a favorable economy. Unequivocally, the bubble/collapse is getting somebody somewhere rich

[dendres]

I'm shocked that the markets haven't had a major correction in years.The manipulation by the FED would make me think this will be a significant correction.Cheers George!

[Zero_Narrative]

My brain was soo fried today and I was even able to understand that explanation. What an amazing teacher.

[edward.abraham]

Bad way to resume from a vacation, META down 40k, ALLP down 35k, Draft Kings down 6k, NIO down 15K, ABML down 8k, and my wife doesn’t know. I'm just hanging on to Jim Cramer's words about opportunities in volatile times so perhaps, I either wait for a recovery or pick profitable investments to substitute for my loss.

[gilbertbrien]

Protecting your capital is much more important than making money. Basically because if you lose your capital, making money is much harder. ''Missing the train'' vs. ''losing your money''. There are a lot of trains, but if your money is gone, it's over.

[biform]

7:25 "Red flags coming out of China."
Sorry, had to burst out laughing at that one.

[jimmyhat]

George your such a generous Man God Bless You and Thank You Brother

[brettmann]

Best economic teacher I've ever had..👍

[benjamindavidson]

I genuinely mean it when I express my stress and concern regarding the market crash and high inflation, particularly in relation to my retirement. I have been experiencing losses for quite some time, and while some may argue that crises can present opportunities, I am feeling overwhelmed. However, I understand that investing is a long-term endeavor, and it is crucial to maintain focus on the bigger picture and the long run.

[dpledoone]

The downgrades from BBB- to BB+ are potentially very damaging as there will be no catalyst to get these credits back to investment grade any time soon, hence given where rates are, bank NIMs (margins) will tank. Not sure whether this is enough to bring down the economy, but this certainly does not help…

[Inventive]

Thanks for the no bullshit breakdown with charts and understandable :) info. Gracias. Have a good week George.

[lilytea]

1:12: 💰 Michael Burry has made a 1.6 billion dollar bet that the stock market will crash, using options to sell shares at a certain price and date.
2:58: 📉 The value of options is determined by the probability of the stock market going up or down, with Michael Burry making a $1.6 billion bet based on the inversion of the yield curve and the expectation of a recession.
6:09: 🌍 The global economy is showing signs of recession, with the Eurozone and China being particularly affected.
9:15: 💼 The Chinese unemployment rate and manufacturing sector are indicators of the global economy, including the US. Downgrading US banks may have significant consequences.
12:10: 📉 Fitch warns that banks may be downgraded, indicating a potential stock market crash.
Recap by Tammy AI

[juancpt]

Thanks George. The magnitude of retail speculators are keeping the stock market afloat, for now. They will be very quick to sell/short the market during a shock / black swan event. Therefore, In my opinion, a flash crash is very probable and I am in Michael Burry's camp. I do not trust this market at all, not only because of central banks' involvement since the GFC, but because of the huge increase in retail speculators, who will move the market to the extreme in short period of time during the next economic / financial shock! Does this make sense?

[monicamarino]

George, people that were born in the Great Depression lived in the great depression, Says that it already started, and would be far worse than anything that has happened .

[trazzpalmer]

As an lnvesting enthusiast, I often wonder how top level investors are able to become millionaires off investing. . I’ve been sitting on over $545K equity from a home sale and I’m not sure where to go from here, is it a good time to buy into stocks or do I wait for another opportunity?

[cjfinance]

Don't forget that 100 USD 10 years ago is worth only 50usd...
So if the market is worth 4000 today, it means it was only 2000 ... 10 years ago 🤷

The pricing is useless if you take a count if inflation 🧐

[stevenshorten]

China's manufacturing is largely moving over to Vietnam and other SE Asian countries.

[rogerkamben]

The entire financial system is one giant virtual game. There are no rules anymore and they have the printer. It's impossible to say how far down the road they can kick the can