Latest / Earn Your Leisure / MICHAEL BURRY BET $1.6BILLION ON A STOCK MARKETCRASH. WHAT DOES THIS MEAN?

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MICHAEL BURRY BET $1.6BILLION ON A STOCK MARKETCRASH. WHAT DOES THIS MEAN? · Earn Your Leisure

• 0:00
  Speaker 1: An illegal alien from Guatemala charged with raping a child
• 0:03
  Speaker 1: in Massachusetts. An MS thirteen gang member from Al Salvador
• 0:07
  Speaker 1: accused of murdering a Texas man of Venezuelan charged with
• 0:11
  Speaker 1: filming and selling child pornography in Michigan. These are just
• 0:15
  Speaker 1: some of the heinous migrant criminals caught because of President
• 0:19
  Speaker 1: Donald J.
• 0:20
  Speaker 2: Trump's leadership.
• 0:21
  Speaker 1: I'm Christy nom the United States Secretary of Homeland Security.
• 0:25
  Speaker 1: Under President Trump, attempted illegal border crossings are at the
• 0:29
  Speaker 1: lowest levels ever recorded, and over one hundred thousand illegal
• 0:33
  Speaker 1: aliens have been arrested. If you are here illegally, your
• 0:37
  Speaker 1: next you will be fined nearly one thousand dollars a day, imprisoned,
• 0:41
  Speaker 1: and deported.
• 0:42
  Speaker 2: You will never return.
• 0:44
  Speaker 1: But if you register using our CBP home app and
• 0:47
  Speaker 1: leave now, you could be allowed to return legally.
• 0:50
  Speaker 2: Do what's right. Leave now.
• 0:53
  Speaker 1: Under President Trump, America's laws, border and families will be protected.
• 0:57
  Speaker 3: Sponsored by the United States Department of Homeland Security.
• 1:00
  Speaker 4: Michael Burry, who actually referenced him last episode, Doctor Michael Burry,
• 1:06
  Speaker 4: who he got pretty famous after the Big Short Situation
• 1:11
  Speaker 4: came after that movie. He was one of the ones
• 1:13
  Speaker 4: that actually met on the collapse of the economy in
• 1:16
  Speaker 4: two thousand and eight and made billions of dollars off
• 1:19
  Speaker 4: of that. So he's back, and he's back on it.
• 1:25
  Speaker 4: He's back on his booth, and the whole world is scared.
• 1:32
  Speaker 4: So I'm gonna actually just read what happened. So doctor
• 1:36
  Speaker 4: Michael Berry, renowned for forecasting in two thousand and eight
• 1:40
  Speaker 4: housing crisis collapse, has depicted in the Big short has
• 1:44
  Speaker 4: talked over a one point six billion in potential Wall
• 1:47
  Speaker 4: Street downturn. Recent SEC filings revealed Burry's fun Scion Asset
• 1:54
  Speaker 4: Management has invested in put options against both the S
• 1:59
  Speaker 4: and P five hundred, eight hundred and sixty six million
• 2:02
  Speaker 4: and NASDAQ one hundred and seven seven hundred and thirty
• 2:05
  Speaker 4: nine million. These moves represent over ninety percent of his
• 2:09
  Speaker 4: portfolio signet, signaling a significant bearish stance. However, Burry's position
• 2:16
  Speaker 4: has appeared inconsistent. Earlier this year, he am you gligously
• 2:21
  Speaker 4: and you ambiguously viiguously got you tweet team work it
• 2:28
  Speaker 4: work tweeted itself to his to his bads followers, only
• 2:33
  Speaker 4: to retreat by Mark in March, admitting I was wrong
• 2:37
  Speaker 4: to say so my bad so it happened despite his
• 2:41
  Speaker 4: bearish bet. The S and P five hundred and as
• 2:44
  Speaker 4: that both have shown substantial growth this year, increasing in
• 2:48
  Speaker 4: pross only sixteen percent and thirty eight percent, respectively. Now,
• 2:51
  Speaker 4: it has been a bad year for I mean, this
• 2:54
  Speaker 4: has been a bad month for the stock market. Yeah, historically,
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  Speaker 4: no like this month twenty and twenty three. Yes, I'm
• 3:05
  Speaker 4: saying this has been This has been a down moth.
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  Speaker 4: But for the year, the markets has been up. So
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  Speaker 4: being that he's putting a bet that the market is
• 3:15
  Speaker 4: going to go down, a lot of people are, you know,
• 3:18
  Speaker 4: a little nervous. So is this blown out of a
• 3:20
  Speaker 4: portion or is this something that investors they need to.
• 3:25
  Speaker 3: I think it's a I love Michael Burry one of
• 3:27
  Speaker 3: my inspirations after I watched the pig short. It's slightly
• 3:32
  Speaker 3: overblown for a couple of reasons. Number One, when you
• 3:35
  Speaker 3: do options, for every option, you control how many shares
• 3:39
  Speaker 3: everyone put in chat how many shares do you get
• 3:41
  Speaker 3: to control? So I don't think the capital outlet is accurate.
• 3:45
  Speaker 3: Number Two, this was last quarter, so they're reported and
• 3:49
  Speaker 3: the point of now. But the thing about when you
• 3:52
  Speaker 3: run a fund, you don't have to disclose your entry,
• 3:55
  Speaker 3: your exit, the other correlating positions that you have. And
• 4:00
  Speaker 3: also he's not going to tell you the exact moment
• 4:02
  Speaker 3: when he gets out. When I was talking to Josh
• 4:06
  Speaker 3: this weekend, there's a couple people that like always get
• 4:09
  Speaker 3: great headline, a great clickthrough. Michael Burry, Kathy Wood, Mike Novagrats,
• 4:15
  Speaker 3: Elon Musk, Kanye West. If you put any of them
• 4:18
  Speaker 3: in an article about investing, or Warren Buffett, you're going
• 4:20
  Speaker 3: to get clicks. So I think for those of you
• 4:24
  Speaker 3: who have been doing doing research, you are already aware
• 4:26
  Speaker 3: of this position. August historically is a down month, say
• 4:31
  Speaker 3: lighter month, so I would we've only been down maybe
• 4:33
  Speaker 3: three or four weeks since those all time highs. So
• 4:37
  Speaker 3: I know a lot of people are asking, you know,
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  Speaker 3: it's this overblown. I don't think it's overblown. I think
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  Speaker 3: it's a great hedge overall to have in the market.
• 4:44
  Speaker 3: But if you go look at the other positions that
• 4:45
  Speaker 3: he has, he's along the Japanese ETF, which is a
• 4:50
  Speaker 3: great exposure play.
• 4:52
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  Speaker 5: your vision forward. This episode is brought to you by
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• 6:43
  Speaker 1: An illegal alien from Guatemala charged with raping a child
• 6:46
  Speaker 1: in Massachusetts. An MS thirteen gang member from El Salvador
• 6:50
  Speaker 1: accused of murdering a Texas. Man of Venezuelan charged with
• 6:55
  Speaker 1: filming and selling child pornography in Michigan. These are just
• 6:59
  Speaker 1: some of the hat migrant criminals caught because of President
• 7:02
  Speaker 1: Donald J.
• 7:03
  Speaker 2: Trump's leadership.
• 7:04
  Speaker 1: I'm Christy Noman, the United States Secretary of Homeland Security.
• 7:08
  Speaker 1: Under President Trump, attempted illegal border crossings are at the
• 7:12
  Speaker 1: lowest levels ever recorded, and over one hundred thousand illegal
• 7:16
  Speaker 1: aliens have been arrested.
• 7:17
  Speaker 2: If you are here.
• 7:18
  Speaker 1: Illegally, your next you will be fine nearly one thousand
• 7:22
  Speaker 1: dollars a day.
• 7:23
  Speaker 2: Imprisoned and deported, you will never return.
• 7:27
  Speaker 1: But if you register using our CBP home app and
• 7:30
  Speaker 1: leave now, you could be allowed to return legally. Do
• 7:33
  Speaker 1: what's right, leave now. Under President Trump America's laws, border
• 7:39
  Speaker 1: and families.
• 7:40
  Speaker 3: Will be protected sponsored by the United States Department of
• 7:42
  Speaker 3: Homeland Security because their indexes and economy has been going up.
• 7:46
  Speaker 3: But if you really think the market is going to
• 7:48
  Speaker 3: fall apart, he would have short at the n e K,
• 7:50
  Speaker 3: the Japanese index, German decks as well. So I think
• 7:54
  Speaker 3: this is more of a headge than anything. Will it
• 7:56
  Speaker 3: be profitable in it, yes, but you do have to
• 7:58
  Speaker 3: take in consideration. When Mike has these positions on, he's
• 8:01
  Speaker 3: usually too early. So when he's short, he's getting in
• 8:04
  Speaker 3: short too early. When he's going a long, he's in
• 8:07
  Speaker 3: too early. So I wouldn't follow this as a signal
• 8:10
  Speaker 3: to get in. But it is a very good trade
• 8:12
  Speaker 3: on his end to hedge the market for where it
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  Speaker 3: is currently.
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  Speaker 5: I'm with you on everything you just said. You nailed
• 8:18
  Speaker 5: it as usual, of course, but yeah, I mean you
• 8:23
  Speaker 5: the timing is important, right, So like what you just
• 8:25
  Speaker 5: said about him being in the trades too early, the
• 8:28
  Speaker 5: other part is that by the time you hear it's
• 8:30
  Speaker 5: too late, it's too late, right, That's the part that
• 8:33
  Speaker 5: we got to realize. By the time it becomes news
• 8:35
  Speaker 5: that trade has already been put in two to three months, probably.
• 8:39
  Speaker 3: Prior or he could have exited already.
• 8:41
  Speaker 5: Or he could have exited. And we don't even know
• 8:43
  Speaker 5: if he bought calls. We just know that he made puts.
• 8:45
  Speaker 5: So when he makes the call or the put call
• 8:48
  Speaker 5: in January and by March, who knows, as he's seeing
• 8:52
  Speaker 5: this trend, he's probably put in more trades to offset
• 8:55
  Speaker 5: and had his positions. That part you never never get
• 8:58
  Speaker 5: you displayed. Yeah, so even now, I mean, I guess
• 9:02
  Speaker 5: after he put that pradition, his his account kind of
• 9:05
  Speaker 5: got disappeared, which is which is weird. But this is
• 9:09
  Speaker 5: not something it's news because of who it is and
• 9:12
  Speaker 5: because of the stat he's had in two thousand and eight.
• 9:15
  Speaker 5: But like you said, if he looked at it as
• 9:17
  Speaker 5: a global economy, he would have been making puts throughout
• 9:20
  Speaker 5: the world and that has well at least we don't know. Again,
• 9:23
  Speaker 5: we don't know what has happened, and so this is
• 9:25
  Speaker 5: not something that I mean, personally I would be looking
• 9:27
  Speaker 5: at and saying all right, well, if Mike's doing this,
• 9:30
  Speaker 5: this is something that I should be doing to get
• 9:33
  Speaker 5: in y right. It should be something of note like, Okay,
• 9:35
  Speaker 5: this is something that's happening. But again, we don't know
• 9:37
  Speaker 5: the timing of it. We don't see every transaction that
• 9:39
  Speaker 5: has made with every trader. We don't see those parts.
• 9:42
  Speaker 5: We just see the headlines. So this feels more like
• 9:44
  Speaker 5: a headline to have an article. But take note, great headline, clear,
• 9:49
  Speaker 5: great headline.
• 9:51
  Speaker 3: But if you're reporting something a quarter or three months
• 9:54
  Speaker 3: too late and you don't know when someone's going to
• 9:56
  Speaker 3: addit in the grand scheme of things, it does not
• 10:00
  Speaker 3: that really matter. Do I think we'll have a pullback?
• 10:02
  Speaker 3: I mean, we're going through one now, but it's not
• 10:04
  Speaker 3: like we're facing anything that we're facing in twenty twenty.
• 10:09
  Speaker 3: So yeah, please be con And for everyone who's like, well,
• 10:11
  Speaker 3: Mike got lucky in one trade. He provided five hundred
• 10:14
  Speaker 3: percent return for clients, and it was a good lesson.
• 10:16
  Speaker 3: If you watch the movie, there were clients complaining even
• 10:19
  Speaker 3: about the five hundred percent return. They hated this strategy
• 10:22
  Speaker 3: all the way through. They didn't believe when the premiums
• 10:25
  Speaker 3: was going up when he returned five backs, they were
• 10:27
  Speaker 3: still upset once they got taken out of the fund,
• 10:30
  Speaker 3: So you have to be very mindful. Also, he could
• 10:34
  Speaker 3: have an open straddle. Like there's a lot of layers
• 10:36
  Speaker 3: to this, but you have to look at the entire
• 10:38
  Speaker 3: portfolio to see to get a true picture of what's
• 10:40
  Speaker 3: going on.
• 10:41
  Speaker 5: And even August this is not something that's a tip.
• 10:43
  Speaker 5: This is typically how July August usually moved. When we
• 10:47
  Speaker 5: talk about trade volumes and you know pullbacks and then
• 10:50
  Speaker 5: you know the end of the third quartera September, and
• 10:52
  Speaker 5: we saw it like that's what I said. If you've
• 10:54
  Speaker 5: been watching market money, we've been through some of these
• 10:56
  Speaker 5: type of cycles. But we've seen August has been a
• 10:58
  Speaker 5: pullback throughout the month at the end of slight trend up,
• 11:01
  Speaker 5: and in September, as the third quarter kind of ends,
• 11:04
  Speaker 5: you start to see a trend down. So this is
• 11:06
  Speaker 5: typical for the seven months.
• 11:08
  Speaker 3: Yeah, I remember in August twenty four to twenty fifteen,
• 11:11
  Speaker 3: that's when I placed like my first really big swing
• 11:14
  Speaker 3: trade when I felt like, okay, I had this same
• 11:16
  Speaker 3: thing was happening. Nick was falling, Russell was falling, Dad
• 11:20
  Speaker 3: was falling. Eus was falling, and then things slowly start
• 11:23
  Speaker 3: to turn around the next year. August is a month
• 11:25
  Speaker 3: that's usually slow in the volume lax or if you're
• 11:28
  Speaker 3: a short seller, that's a good time July and August
• 11:31
  Speaker 3: to look to begin to build your positions too short.
• 11:34
  Speaker 1: An illegal alien from Guatemala charged with raping a child
• 11:38
  Speaker 1: in Massachusetts. An MS thirteen gang member from Al Salvador
• 11:42
  Speaker 1: accused of murdering a Texas man of Venezuelan charged with
• 11:46
  Speaker 1: filming and selling child pornography in Michigan. These are just
• 11:50
  Speaker 1: some of the heinous migrant criminals caught because of President
• 11:54
  Speaker 1: Donald J.
• 11:54
  Speaker 2: Trump's leadership. I'm Christine Noman, the.
• 11:57
  Speaker 1: United States Secretary of Homeland Security. Under President Trump, attempted
• 12:02
  Speaker 1: illegal border crossings are at the lowest levels ever recorded,
• 12:06
  Speaker 1: and over one hundred thousand illegal aliens have been arrested.
• 12:09
  Speaker 1: If you are here illegally, your next you will be
• 12:12
  Speaker 1: fine nearly one thousand dollars a day, imprisoned and deported,
• 12:17
  Speaker 1: you will never return. But if you register using our
• 12:20
  Speaker 1: CBP home app and leave now, you could be allowed
• 12:23
  Speaker 1: to return legally.
• 12:25
  Speaker 2: Do what's right. Leave now.
• 12:27
  Speaker 1: Under President Trump America's laws, border and families will be protected.
• 12:32
  Speaker 3: Sponsored by the United States Department of Homeland Security,