China’s Property Crisis: How Michael Burry Dodged a Bullet
In a stunning turn of events, China’s property developer Evergrande has filed for bankruptcy, bringing attention to the challenges facing the Chinese real estate market and the broader economy. As a result, the country’s stock market has also suffered, with the CSI 300 benchmark index losing over 3.3% in the past 5 days. However, legendary stock investor Michael Burry managed to avoid the fallout by selling all of his Chinese stock holdings right before Evergrande’s collapse. According to the ‘Michael Burry Stock Tracker’ Twitter account, Burry dumped his Chinese stocks, including JD.com and Alibaba. In addition, Burry made a significant short bet against the US stock market, purchasing put options contracts tied to SPDR S&P 500 ETF Trust and Invesco QQQ Trust.
Key Points:
- Evergrande’s bankruptcy filing highlights the challenges in the Chinese real estate market.
- Michael Burry sold all of his Chinese stock holdings before Evergrande’s collapse.
- He offloaded shares in the banking sector and sold his holdings in JD.com and Alibaba.
- Burry made a significant short bet against the US stock market, purchasing put options contracts.
Hot Take:
Michael Burry’s timely decision to sell his Chinese stocks before Evergrande’s collapse showcases his astute market predictions. His short bet against the US stock market further demonstrates his unconventional investment strategies. Burry’s actions serve as a reminder of the importance of staying vigilant and making informed decisions in the ever-changing world of finance.
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