What do Big Short Michael Burry and Warren Buffett know that we dont?

Image for article What do Big Short Michael Burry and Warren Buffett know that we dont?

News Summary

  • Burry’s fund, Scion Asset Management, bought $866 million in put options (that’s the right to sell an asset at a particular price) against a fund that tracks the S&P 500, and $739 million in put options against a fund that tracks the Nasdaq 100.
  • Big banks could also be in hot water: Bank shares fell on Monday following reports that Fitch Ratings warned of an additional downgrade of the US banking industry that could affect the ratings of several large American lenders.
  • Americans keep spending money, unemployment is low, the Federal Reserve may soon pause its painful interest rate hikes as inflation rates steadily — albeit slowly — come down.
  • Even when adjusted for inflation, retail sales volumes rose by 0.6%, “indicating that while consumers are increasingly cautious with their outlays amid elevated prices and interest rates, they are not retrenching,” said EY chief economist Gregory Daco.
  • Russia and Ukraine’s impact on inflation: Global inflation is finally coming down, but heightened geopolitical tensions threaten to raise food and oil prices across the globe.
  • Most recently, he told CNBC that the world is seeing “serious” levels of “nuclear proliferation and nuclear blackmail.” This level of geopolitical chaos, he said, hasn’t been seen since World War Two.
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