Michael Burry Sells Sprott Physical Gold Trust as US CPI Drops

• Michael Burry exits his entire stake in Sprott Physical Gold Trust amidst signs of cooling inflation in the US.
• In addition to selling his gold position, Burry is now betting on consumer strength by investing in Shift4 Payments.
• Burry is also eyeing opportunities in the real estate sector, investing in Hudson Pacific Properties amid potential Federal Reserve rate cuts.

As inflation slows down, Michael Burry shifts his investment strategy, shedding gold and betting on consumer spending and real estate recovery.

Michael Burry Exits Gold Amidst Cooling Inflation

Michael Burry, who gained fame for his foresight during the 2008 financial crisis, has recently sold his entire position in the Sprott Physical Gold Trust (PHYS). Over the last six months, PHYS has seen a substantial 23% increase, reinforcing gold’s reputation as a hedge against inflation. Burry’s move to liquidate his holdings suggests a reevaluation of his economic outlook, especially in light of the recent slowdown in US inflation rates.

Burry’s Bullish Stance on Consumer Spending and the US Dollar

In a significant shift from his previous strategy, Burry has now turned his attention to the US consumer market and the strength of the dollar. He has acquired a substantial 13.97% stake in Shift4 Payments (FOUR), a payment processing firm that services over 200,000 businesses across various sectors, including retail, hospitality, and restaurants. This investment aligns with recent retail sales data showing a 1% rise in July, much higher than the forecasted 0.3%. Burry’s hefty investment in consumer-related stocks highlights his confidence in the robustness of the US economy amid declining inflation figures and a strengthening dollar.

Investments in Real Estate Signal Confidence in Recovery

Broadening his investment horizon, Burry has also put money into Hudson Pacific Properties (HPP), a real estate investment trust that has plummeted by over 49% this year. Known for his bearish approach, Burry’s new investment suggests a belief in the rebound potential of commercial real estate, particularly if the Federal Reserve opts for rate cuts. Rate reductions generally benefit the real estate sector by lowering borrowing costs, which could give a much-needed boost to struggling properties like those in Hudson Pacific’s portfolio.

Conclusion

Michael Burry’s recent portfolio adjustments signal a strategic pivot prompted by the cooling of US inflation. By divesting from gold and placing significant bets on consumer spending and real estate, Burry appears optimistic about the US economy’s trajectory. These investments indicate his belief in a potential rate cut by the Federal Reserve, which could further fuel economic activity. For investors, Burry’s moves serve as a well-timed reminder to reassess portfolios in light of evolving economic indicators.