Burry is making his bearish bets against the S&P 500 and Nasdaq 100 at the end of the second quarter. Burry's fund has bought put options with a notional value of $739 million against the popular Invesco QQQ Trust ETF during the quarter, and separate put options with a notional value of $886 million against the SPDR S&P 500 ETF. This may act as a word of caution and also a tip for millions of investors across the globe who follow Burry since he forecasted the lending crisis and profited handsomely from the market downturn.
Michael J. Burry started dabbling in financial investing while he was still studying medicine at Vanderbilt University School of Medicine in Tennessee. Soon, without finishing, he left school to start his hedge fund, which he called Scion Capital and the rest is history, a Finbold article cited.
In 2005, Michael Burry's attention shifted to the subprime market, where he astutely identified irregularities that would ultimately trigger the 2008 financial crisis. His meticulous analysis of mortgage lending practices and bank balance sheets revealed the inherent risks in the market, accurately foreseeing the impending collapse as early as 2007. Burry's prescience lay in recognizing the danger posed by millions of low-income borrowers obtaining homes with substantial leverage, often without down payments, and unable to sustain their mortgages when interest rates rose.
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