To The Moon

The famous Wall Street "Big Shorter" has made a new move! Michael Berry, the prototype of the movie "The Big Short", was famous for accurately predicting the 2008 subprime mortgage crisis in the United States. Now he has found a new " Big Short " opportunity: bet more than $1.6 billion to predict the collapse of the stock market. Big short on U.S. stock market According to information released on August 14th, Wall Street's well-known "big short" fund manager Michael Burry held bearish $S&P 500(.SPX)$ index and $NASDAQ 100(NDX)$ index pull options at the end of Q2 . Burry's investment company, Scion Asset Management, bought puts on the $Invesco QQQ Trust-ETF(QQQ)$ with a notional value of $739 million and puts on the $SPDR S&P 500 ETF Trust(SPY)$ with a notional value of $886 million during the quarter. Scion Asset Management, LLC 13F Holdings in Q2 in 2023 Undoubtedly, It’s really notable for Berry to aggressively short SPY and QQQ. What’s more, with such pessimism from an independent-thinking investor like Berry, investors should not ignore the operations. However, investors should also take into account that Berry has already warned of a crash in early 2023 and posted a "sell" tweet on Twitter/X ...... Twitter/X, The Michael Berry Files Three months later, Berry withdrew his sell recommendation, altering his view of the stock market. Twitter/X, The Michael Berry Files How Investors Can Profit from a Sharply Falling Market? Investors, who tend to earn profits from a sharply declining market, can find a alternative way to invest by ETFs, in addition to buying and selling put options. For example, investors can short the $SPDR S&P 500 ETF Trust(SPY)$ , $ProShares Short S&P500(SH)$ , $S&P 500 Bear 2X ETF(SDS)$ , and $S&P 500 Bear 3X ETF(SPXU)$ . Source: TigerTrade There are also another ways like shorting $纳斯达克100ETF(513110)$ , $ProShares Short QQQ(PSQ)$ , $ProShares UltraShort QQQ(QID)$ and $Nasdaq100 Bear 3X ETF(SQQQ)$ . The S&P 500 has risen more than 15% year to date, while the Nasdaq 100 has surged more than 38%. Contrarily, the stock market was under-performed on August, with the S&P 500 down 3.3% and the Nasdaq 100 retreating 4.5% Source: TigerTrade It’s not a crazy idea to profit from a stock market crash or hedge against existing market risk. Thus, for investors who agree with Michael Berry's hypothetical bearish market outlook, ETFs offer a range of options for constructing portfolios to clients. It should be emphasized that investors are advisable to be aware of the attrition of multi-leveraged ETFs that we have often mentioned before! Follow me to learn more about analysis!!