Michael Burry, renowned for his 2008 financial crisis forecast, has sold off his entire investment in the Sprott Physical Gold Trust ($PHYS), which had gained 23% over the past six months.
This move follows a cooling in U.S. inflation, which might have influenced Burry’s change in strategy.
Burry’s departure from gold reflects a shift in his investment focus, as recent data shows U.S. inflation slowing significantly. The Consumer Price Index (CPI) for July showed a minimal increase of 0.2%, with the annual rate dropping to 2.9%, the lowest since March 2021.
Instead of gold, Burry is now heavily invested in Shift4 Payments ($FOUR), which represents nearly 14% of his portfolio. This move aligns with a recent surge in retail sales and suggests confidence in consumer spending.
Additionally, Burry is betting on a recovery in real estate by investing in Hudson Pacific Properties ($HPP), despite its 49% drop this year. This investment indicates a belief in a rebound in commercial real estate, possibly aided by potential interest rate cuts.
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