Michael Burry Exits Gold, Bets on Consumer Stocks and Real Estate

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.

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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.

Meanwhile, the crypto market has reacted sharply to the economic data, with Bitcoin and other major cryptocurrencies experiencing declines. Bitcoin is trading at $57,200, down over 4% in the past 24 hours, while Ethereum and XRP have also dropped, highlighting the market’s sensitivity to economic shifts.

Alexander Stefanov