Trader who predicted 2008’s financial crisis puts $1.6bn on the stock market collapse by the end of 2023

Michael Burry, played by Christian Bale in the movie ‘The Big Short’, is putting his money on another financial disaster.

A man who was the subject of the movie “The Big Short “, after he correctly predicted the housing market’s collapse in 2008, indicated that a Wall Street crash would occur before the end of the year.

Michael Burry, played by Christian Bale in the 2015 film directed by Adam McKay, is believed to have placed bets of over $1.6bn (PS1.25bn) in the 2023 event.

Security Exchange Commission filings released on Monday show that the president has withdrawn positive options from the S&P 500 and the Nasdaq 100, representing the US economy in general.

Mr Burry is said to CNN to have used more than 90 % of the portfolio he holds to place bets on the market’s decline.

Scion Asset Management funds were found to have purchased huge stakes in put options on both stock market indexes. Put options grant the right for a company to offer an asset at a specific price.

Mr Burry purchased $866m (PS679m) as options on an account part of the S&P 500 and $739m (PS580m) for a fund that tracks the Nasdaq 100.

The odds are stacked because the S&P 500 has increased by 16 per cent, while it has already risen by Nasdaq 100 by 38 per cent this year.

Mr Burry was famous for his market fluctuations during the 2000s mid-century, in which he bet against the housing market during the events which led to the global recession.

He may not always do it right. However, in January, he tweeted “Sell” at 1.4 million fans, and in March, he wrote, “I was not right to use the word sell”.

As of the 17th of August, his Twitter account appears inactive, with no tweets at all, following the time he removed his tweets as a protest with Elon Musk.

The Big Short was originally a best-selling novel by Michael Lewis before it was made into a film with Steve Carell, Ryan Gosling and Brad Pitt.

Bale stated in 2015 of meeting and playing Mr Burry: “He’s a man who is exceptionally well-informed and has a brain unlike any other brain I’ve seen in my lifetime And who not only this incredible knowledge of and love for numbers and the feeling of numbers but also an incredible amount of emotion about the results.

“He fully understood what was going on. He did not see himself as any hero.”

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