The Misleading Reporting of Michael Burry's Stock Market Prediction

The podcast discusses the misleading reporting around Michael Burry's recent stock market prediction. While many media outlets claimed that Burry invested $1.6 billion and risked 90% of his portfolio on a market downturn, this narrative is inaccurate. Burry's filing with the SEC revealed that he was short a certain number of shares using put contracts, which represents 100 shares of the underlying security. The notional value of these puts, reported by Burry, was $1.6 billion, but he did not actually invest that much money. Estimates suggest that his actual investment is between $250-$600 million. The podcast highlights the responsible reporting of this information and criticizes the potential negative impact on retail investors who may make trading decisions based on false information.