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Michael Burry Makes Significant Short Bet
Hedge fund manager Michael Burry has allocated 66% of his $1.4 billion portfolio to put options on Palantir Technologies (NASDAQ: PLTR) and 14% to put options on Nvidia (NASDAQ: NVDA). This reflects a bet exceeding $1 billion that the shares of both companies will decline, indicating Burry’s skepticism about the ongoing artificial intelligence boom.
S&P 500 Valuations Raise Concerns
In October, the S&P 500 recorded a cyclically adjusted price-to-earnings (CAPE) ratio of 39.5, the highest in 25 years, historically correlating with an average decline of 30% over the following three years. Investors are cautioned to remain wary as such extreme valuations often lead to significant market downturns.
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