A familiar name has emerged in a contrarian view against the backdrop of the market’s blazing rally. Michael BarryThe company, whose legendary bear bet on the US housing market inspired the movie The Big Short, appeared to challenge the market bulls in the second quarter.
broad market SPDR S&P 500 ETF Trust spy It has risen more than 16% over the first half of this year. In addition to it, Invesco QQQ Trust Series 1 QQQ jumped 20%.
Berry and his hedge fund Scion Capital Last quarter turned bearish on both the overall market and the tech sector. Specifically, 20,000 put options on SPY and 20,000 put options on QQQ, which indicated to investors that the market had peaked and could enter a correction.
In contrast to Mr. Barry’s bearish trend, the market is currently pulsing with optimism, with SPY up 16% this year and the Nasdaq Composite up nearly 30%.
Benzinga’s PreMarket Prep host Dennis Dick said: “Everybody’s talking about trading Michael Barry. I mean, we go to the gym and they’re talking about it.” Ta.
And not all investors agree with Burley.
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Mark ChaikinThe founder and CEO of Chaikin Analytics declared him a “one-trick pony,” declaring: “He could be wrong. There are people in the world who are much smarter than Berry.” .
Chaikin acknowledged the typical market rebound, but emphasized the strength of current market structures. “The S&P has a bullish channel and if that channel holds, we won’t see a full 10% drop.”
Barry’s history of market predictions so far may cause ripples of concern, but voices like Chaikin’s remind investors to remain objective.
The next few months will tell if Mr. Barry’s bold bear bet is justified or derailed.
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