Michael Burry, an investor who became famous for predicting the 2008 financial crisis, has sold all his shares in the Sprott Physical Gold Trust ($PHYS), despite the trust’s 23% gain over the past six months, thanks to gold’s role as a safe investment against rising prices.
Burry’s decision to exit from gold coincides with a sharp drop in cryptocurrencies, with Bitcoin falling to $57,200 and Ethereum dropping to $2,543 according to CoinMarketCap
However, this shift away from gold may be connected to recent changes in inflation and the recent decline in the value of Gold. The latest US Consumer Price Index (CPI) report shows that inflation has slowed down significantly.
In July, prices rose by just 0.2% from the previous month, and the annual rate fell to 2.9%, the lowest since March 2021. This drop in inflation could mean that the Federal Reserve might lower interest rates soon, which could have influenced Burry’s decision to move away from gold.
Instead of gold, Burry has increased his stake in Shift4 Payments ($FOUR), a company that handles payment processing for many businesses. This new investment makes up nearly 14% of his portfolio.
Additionally, Burry has also invested in Hudson Pacific Properties ($HPP), a real estate company that has lost almost 50% of its value this year. This seems Burry is betting on a recovery in the commercial real estate market, following his pattern of investing in undervalued assets with potential for future growth.
Also Read: Atlanta Fed Hints at Possible Interest Rate Cut Soon
