Investing Thread

[MU82]

Michael Burry's Scion Asset Management has taken bearish positions in AI darlings Nvidia (NVDA) and Palantir (PLTR), a regulatory filing showed, as the famed investor hinted caution toward the artificial intelligence trade that has boosted a lot of this year's market rally. Burry is best known for his prescient bet against the U.S. housing market ahead of the 2008 financial crisis.

https://seekingalpha.com/news/4514017-michael-burrys-big-short-instincts-target-ai-trade-with-puts-on-nvidia-palantir

[JWags85]

Michael Burry's Scion Asset Management has taken bearish positions in AI darlings Nvidia (NVDA) and Palantir (PLTR), a regulatory filing showed, as the famed investor hinted caution toward the artificial intelligence trade that has boosted a lot of this year's market rally. Burry is best known for his prescient bet against the U.S. housing market ahead of the 2008 financial crisis.

https://seekingalpha.com/news/4514017-michael-burrys-big-short-instincts-target-ai-trade-with-puts-on-nvidia-palantir

Will be interesting.  Post-2008, he's been good on non-US equities (crushed the China rebound) but pretty spotty on domestic names. And he's been bearish on semiconductors for like 2+ years now.  Suppose he's bound to right eventually

[Hards Alumni]

Will be interesting.  Post-2008, he's been good on non-US equities (crushed the China rebound) but pretty spotty on domestic names. And he's been bearish on semiconductors for like 2+ years now.  Suppose he's bound to right eventually

He's just a doomer that people take too seriously.  His record is very spotty since the big short.

[Uncle Rico]

He's just a doomer that people take too seriously.  His record is very spotty since the big short.

Indeed.  He did move the needle this week, though.  Palantir doth protest too much, methinks

[JWags85]

He's just a doomer that people take too seriously.  His record is very spotty since the big short.

He was notably right in a big and bold way on one of the most impactful contrarian trades in history.  And since then, he didn't blow up or completely fall apart as an investor, thus he still gets attention and press when he gets on the other (usually bearish) sides of popular sentiment.  I agree he's been mixed at best, like I mentioned, especially in specific stock picking, but I get why he's still a voice that gets note.

But ironically, I think the only reason he's still getting press is cause he hit that China trade pretty big, as a non-doomer bull.  Otherwise between his Tesla misses, bailing early on GameStop, etc...  he'd have lost PR credibility.  The only other big guy I can remember with him on the China rebound, and vocal about it, was Tepper...who as bad as he is as an NFL owner, still f***ing rips as a hedge fund manager.

[Pakuni]

Oh, great, they found another way to transfer wealth from the middle class to the rich, and from the young to the old, and create a class of lifetime debtors.

https://www.housingwire.com/articles/trump-proposes-50-year-mortgage-to-help-affordability/

[Skatastrophy]

Oh, great, they found another way to transfer wealth from the middle class to the rich, and from the young to the old, and create a class of lifetime debtors.

https://www.housingwire.com/articles/trump-proposes-50-year-mortgage-to-help-affordability/

This will lower the monthly payment by 10% vs a 30 year, assuming that both 30 and 50 year has the same rate. And they won't have the same rate.

This is a worthless idea that will cost a lot of money for the government and private industry to implement. 

[Uncle Rico]

This will lower the monthly payment by 10% vs a 30 year, assuming that both 30 and 50 year has the same rate. And they won't have the same rate.

This is a worthless idea that will cost a lot of money for the government and private industry to implement.

Done deal, then! 

[forgetful]

I'm far from an investment guru, or even particularly knowledgeable about a lot of the financial details, but was thinking the below and wondering Scoopers thoughts.

Today, ~93% of all stock/securities are held by the wealthiest 10% (with over 50% held by the top 1%). These are people that largely don't need that money and have no where else to put it.

Further, they have nowhere else to put their new wealth that is generated. Does this make the stock market less sensitive to market instabilities, as there is no viable alternative for storing wealth, and an essentially guaranteed flow of new cash/investments.

Note: I'm largely referring to long term crashes with when I refer to sensitivity to market instabilities. There could likely be higher sensitivity to short-term market instabilities, and large fluxes in individual stocks due to changes in sentiment amongst the "active" traders who actually represent a smaller part of the overall market due to a lower float.

[Jockey]

Oh, great, they found another way to transfer wealth from the middle class to the rich, and from the young to the old, and create a class of lifetime debtors.

https://www.housingwire.com/articles/trump-proposes-50-year-mortgage-to-help-affordability/

Simply a way to make even more money for his banker donors.

Corruption is so obvious, but still never ends.