There’s at least one person who is not optimistic that the stock market will rebound, and he’s had a pretty good track record with ominous predictions.
Michael Burry, the famous and prescient investor from “Big Short” movie fame, had his Scion Capital Management company eliminate its entire stock portfolio during the second quarter.
Why? He thinks a stock market crash is around the corner and wants no part of the fallout.
He had investments in 11 companies, and he dumped them all, including A-list brands Alphabet, Meta, Nexstar Media Group, and Bristol Meyers Squibb. His holdings were worth $165 million at the end of the first quarter, and he is no longer worrying about them.
Does he have any stock left? Yes, he’s bullish on Geo Group, a Florida company that operates private prisons. His half a million shares were worth about $3.3 million. Oh, by the way, Scion’s stock got a 12% bump on the news that Burry had such confidence in it.
If you follow Burry on Twitter, you know he’s prone to ring the panic button. He’s had multiple dire warnings about how the global economy is in dire straits, but he put his money where his mouth is this time.
He’s also famous for deleting tweets shortly after he sends them out, including this one last Sunday.
“Can’t shake that silly pre-Enron, pre-9/11, pre-WorldCom feeling.”
Is Mr. gloom and doom right? Or is this just another empty panic attack by a famous investor who seems to have a lot in common with Chicken Little?
We’re about to find out.
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