Michael Burry.

Michael Burry suggested the FTX fiasco and other crypto scandals could be good news for gold.
The “Big Short” investor teased a bet against the market, despite his recent stock purchases.
Burry has warned the S&P 500 could halve in value, and predicted a Fed pivot in the spring.

Michael Burry has trumpeted gold as a likely winner from the crypto meltdown, and hinted he’s betting on stocks to tumble.

Golden opportunity

“Long thought that the time for gold would be when crypto scandals merge into contagion,” Burry said in a now-deleted tweet on Tuesday.

The investor of “The Big Short” fame was almost certainly referring to the financial pressures spreading across the crypto industry that have hit Sam Bankman-Fried’s collapsed crypto exchange FTX. They’ve also weighed on the likes of Celsius, Voyager, the Winklevoss twins’ Genesis, and BlockFi in recent weeks.

Crypto proponents have pitched bitcoin and other tokens as “digital gold”. Their argument is crypto is superior to the yellow metal as a haven asset and store of value during periods of inflation, currency depreciation, and economic turmoil.

Yet crypto prices have plunged this year, slashing the overall market capitalization from $2.2 trillion to around $830 billion. In contrast, gold has dipped only 3% to around $1,765 per ounce — well ahead of the benchmark S&P 500 stock index’s 17% decline.

Burry is likely suggesting that a cascade of crypto fiascos will undercut demand for tokens and could spread to other asset classes, making gold an attractive holding for investors scrambling to protect their wealth.

More pain to come

“You have no idea how short I am,” Burry said in a since-deleted tweet on Wednesday.

The Scion Asset Management boss was likely warning investors not to read too much into his fund’s third-quarter portfolio update on Monday. Scion expanded its holdings from a single stock on June 30 to six at the end of September, boosting the value of its portfolio from around $3 million to $41 million.

Fund managers only have to disclose US-listed stocks in their 13F filings with the Securities and Exchange Commission each quarter. They exclude shares sold short, overseas-listed stocks, and other assets such as commodities.

In other words, Burry’s stock purchases might signal a bullish turn, but he may have hedged or totally offset those bets with short positions and other wagers that aren’t shown in his latest portfolio update.

After all, the investor warned in May that the S&P 500 might …read more

Source:: Business Insider

      

‘Big Short’ investor Michael Burry touts gold as a winner from the FTX fiasco – and hints he’s betting against the stock market

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