💰 Burry Bets Against the Stock Market

^{"The constant happiness is curiosity."}

— Alice Munro

👋 Friends, Rallie here. The newsletter searching for the latest in crypto, finance, and tech to deliver straight to your inbox.

On the menu:

• 💰 Burry Bets Against the Stock Market

• 🗞️ Headlines That Hit

• 📈 Refresh: aNFTs

• ✌️ Trivia Tuesday

• 💯 Top Tweets

The Rallie Recap

🐻 With at least $1.6B USD betting on a bearish market, another Hollywood movie might be in the making. Today, strap in for a rollercoaster ride on stock market charts:

• The man that inspired the film, “The Big Short” is not optimistic about the current state of the stock market, but not everyone agrees.

• 🤼 Michael Burry (played by Christian Bale in the The Big Short) and his company have bet $739M USD against the Invesco QQQ Trust ETF and $886M USD against the S&P 500 ETF.

• 📉 Known for his bearish position on the U.S. housing market before the 2008 financial crisis, many investors could be inclined to follow in Burry’s footsteps this week. 🏃🏽‍♀️

• 🇺🇸 Meanwhile, some of the companies that the man is betting against could be getting a federal boost soon... 🚧 Biden has just finalized the “Buy America” binding guidance to increase the use of U.S. made goods in government-funded infrastructure projects.

• 📊 Still, the U.S. markets are mixed, with the Dow Jones industrial average, S&P 500 index and the Nasdaq composite being in a constant state of ups and downs.

• Big bets, strong opinions. Who will be right? 🎯

• U.S. interest rate hike? 💸 As producer price inflation has accelerated, oil prices are retreating, international market indexes are falling, and investors are worried.

• 👍 But over the last few months, the hopes of no more interest increases rallied the S&P 500 when Wall Street hastily agreed that inflation is under control and recession had been avoided.

• So, what happens now that cracks in market confidence are being revealed?

• The market hasn’t responded yet… The USD has hit more than a one-month high because of its appearance as a safe haven for international investors cautious of China’s tumbling bank loans and global conflict. 🌎

• Will the “safe haven” status be enough to combat stock market doubts?

• Also making news — another big strike? 🚗 Union auto workers and Detroit’s Big Three automakers have yet to come to an agreement before their contract expiration next month.

• The outcomes of the negotiations will affect automaker shares and stock market stability because of the corporations’ stake in the U.S. economy. 🏭

• 🦾 What about the heavy lifters of the S&P 500 and Nasdaq? Fuelled by the rebound in chip and tech stocks, the broad market indexes are increasing. However, the good news comes after the Nasdaq Composite’s first two-week losing streak of the year, caused by the S&P’s struggle to sustain its 2023 rally. 🤧

• 🤔 Will the stock market rise or fall? Bets are coming in!

Headlines That Hit

• ⛓️ Off to jail! Sam Bankman-Fried, former CEO of bankrupt crypto exchange FTX, will prepare for his fraud trial at a jail known for its poor living conditions after violating bail terms.

• 🦫 The good and the bad… Could a global slowdown in trade and the economic impacts of climate change signal a pause in Canada’s interest rate hikes?

• 🏥 Medical justice! Henrietta Lacks, the woman whose cells are behind countless medical advancements, finally receives justice as the biotech company who stole her cells pays her family.

• 🚀 Bipartisan support for crypto? Positive sentiments toward crypto adoption have begun to cross U.S. party lines for many politicians and voters.

Rallie Refresh: aNFTs

More independent as an investment than most, let’s explore the world of automated digital assets.

👩‍💻 What are aNFTs?

• Autonomous non-fungible tokens (aNFTs) are “self-executing digital assets that utilize smart contract technology to automate various processes.” 🤖

• While still at its early stages, these aNFTs are programmable and are advertised to revolutionize the digital asset space.

🤗 The primary potential benefits of aNFTs…

1. Automation: ⚙️ Autonomous NFTs reduce the need for human intervention, minimizing the potential for human effort. This can lead to increased efficiency and speed in NFT transactions.

2. Flexibility: The programmable nature of this digital asset allows them to be customized and adaptable to meet the specific needs of their owners. 🤨

3. 🔎 Transparency: All the transactions for aNFTs are on a public ledger.

4. Security: 🔐 Their storage on decentralized networks and use of smart contracts help reduce the risk of security breaches.

5. Interoperability: These assets can interact with other digital assets and platforms which can drive innovation in multiple industries. 🤝

Remember, it’s important to always DYOR when it comes to aNFTs. Many of the concerns applied to AI, automation and NFTs (such as volatility and lack of regulation) can also apply to these new digital assets.

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✌️Trivia Tuesday✌️

🐑 The answer for Thursday’s newsletter (True or False? Herd mentality is a critical factor in analyzing economics.) is True! Find out today’s answer on Thursday!

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DISCLAIMER: This is not financial or legal advice. This newsletter is strictly educational and is not investment advice or a solicitation to buy or sell any assets or to make any financial decisions.