Michael Burry Sells as Gold US CPI Signals Possible Fed Rate Cut

As a seasoned researcher with a keen eye for market trends and a deep respect for the insights of financial visionaries like Michael Burry, I find his recent moves intriguing. Having closely followed Burry since his prophetic prediction of the 2008 crisis, I can’t help but feel a sense of anticipation when he makes such bold moves.


Michael Burry, the investor known for predicting the 2008 financial crisis, has recently divested all his holdings in the Sprott Physical Gold Trust (PHYS), despite its impressive 23% growth over the past six months. His decision was likely driven by gold’s status as a secure investment option during periods of rising prices.

It so happens that Burry chose to leave gold at the same time when cryptocurrencies experienced a significant decline. Specifically, Bitcoin plunged to $57,200, while Ethereum tumbled down to $2,543, as reported by CoinMarketCap.

Alternatively, the move away from gold could potentially correlate with a slowdown in current inflation rates and the falling value of gold. Notably, the most recent U.S. Consumer Price Index (CPI) report indicates a substantial decrease in inflation.

As a seasoned investor with years of experience navigating the volatile world of finance, I can say that Michael Burry’s decision to sell all his gold and become heavily bullish on the consumer, strength of the dollar, China, and the US job market is a significant move worth taking note of.

— Michael Burry Stock Tracker ♟ (@burrytracker) August 15, 2024

In July, there was a minimal increase of 0.2% in prices compared to the preceding month, and the yearly growth rate decreased to 2.9%, its lowest since March 2021. This decline in inflation might lead the Federal Reserve to reduce interest rates imminently, potentially impacting Burry’s choice to relinquish his gold investments.

Rather than adding more gold, Burry boosted his holdings in Shift4 Payments (symbol $FOUR), a business that manages payment transactions for numerous companies. With this latest purchase, it now represents about 14% of his total investment portfolio.

Moreover, it appears that Burry has also allocated funds to Hudson Pacific Properties ($HPP), a real estate firm. This company has experienced a significant drop in value – around 50% this year. This move could indicate that Burry anticipates a rebound in the commercial real estate market, as his strategy often involves purchasing underestimated assets with the potential for future expansion.

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2024-08-16 03:19