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🔮 Burry’s Crystal Ball Market Forecast

Yo, yo! Happy Saturday! ☀️

Another week of market mayhem means another week of juicy tech news.

So, what better way to start this issue with an imminent “market crash” update.

Also, Elon is now claiming Tesla cars have an actual mind.

We also bring you the latest on China Evergrande’s bankruptcy schemes.

There’s a lot to dig into, so first things first.

Let’s see what Burry’s oracle has in store for us today. 🔮

MONEY MASTERY BRIEF

  • Michael Burry Aims to be the ‘Market Soothsayer’
  • Tesla Cars Have a Mind
  • China Evergrande Seeks Bankruptcy Protection
  • Intel Cancels $5.4B Deal With Tower Semiconductor

💰 Mr.´Big Short´ Bets $1.6B on Market Crash

Michael Burry — a guy notoriously known as the “Big Short” investor — has once again made headlines with another outlandish market move. He’s forecasting some extreme bearish movement in the weeks to come.

While Burry may contribute his fame to correctly predicting the epic crash of the 2008 housing market, he is now wagering his bets on a Wall Street crash. A bet worth more than $1.6B.

Burry is betting against the S&P 500 and Nasdaq 100 according to recent SEC filings on Monday. His Scion Asset Management fund acquired put options amounting to $866 million against an S&P 500-tracking fund and $739 million against a Nasdaq 100-tracking fund.

This “right” to sell an asset at a predetermined price serves as a strategic maneuver in a market downturn anticipation.

Interestingly though, Burry has exhibited some rather enigmatic behavior this year already, tweeting “Sell” to his 1.4 million followers in January then reversing his sentiment in March admitting:

“I was wrong to say sell.”

Yet, when we take a look back to Burry’s historical predictions, we find some rather — uh — minor miscalculations. Some of them include:

  • Shorting Tesla (NASDAQ: TSLA) claiming the EV maker was ridiculously priced
  • Later Tweeting that Tesla would crash like past housing and internet bubbles
  • Failed post-pandemic market collapse prediction in 2021 before the bull run
  • Claiming Bitcoin (BTC) was a speculative bubble
  • Claiming index funds were distorting stock and bond prices when they weren’t

Seems Burry is turning Wall Street into his personal crystal ball…one crash at a time!

🧠 Musk Claims Tesla Cars Have a Mind

Elon Musk now believes that Tesla cars possess a mind and that Tesla may have figured out some AGI aspects. For those who don’t know, AGI refers to “artificial general intelligence” which is characterized by generalized human cognitive abilities in software. The basic premise behind AGI is to enable systems to perform any task a human is capable of.

Tesla has already reiterated that the value inherent in Tesla cars is mostly driven by its self-driving ability. And this is a promise that has been simmering on the backburner for some time now with his fan base split in two.

On one side, you’ve got the devout believers, swearing Tesla’s robotaxi kingdom is just around the corner. Then there’s the weary bunch who after hearing this tune before, have been stranded at the curb.

Musk highlights the positive performance of Tesla’s Full Self-Driving (FSD) Beta system on social media. The tune now seems to be one of pure optimism:

“I think we may have figured out some aspects of AGI. The car has a mind. Not an enormous mind, but a mind nonetheless,” Musk claims.

So, what can we expect from this?

  • AGI may be possible via Tesla’s self-driving program
  • Tesla relies on camera-based vision and neural nets to power its system
  • This approach resembles how humans drive and adapts to multiple environments
  • Tesla’s FSD system is being enhanced via real-world data and software updates

In addition, the introduction of the Dojo supercomputer could substantially thrust Tesla’s self-driving system development into high gear.

Should Musk’s claims prove to be true, it is set to not only revolutionize the automotive sector, but greatly impact the development of AI.

🇨🇳 China Evergrande Seeks Chapter 15 Bankruptcy Protection

Property developer China Evergrande has just filed for Chapter 15 bankruptcy protection in a U.S. court on Thursday amid facing a dire debt crisis. The company’s affiliate Tianji Holdings also filed for protection in a Manhattan court.

Evergrande seems to be the poster child of debt with a mere $340 billion hanging over its head while deciding it’s time to showcase its $81 billion losses from a two-year joyride.

They’ve filed for bankruptcy in New York looking to spruce up their US restructuring game. Yet, word on the street is they’re planning a grand creditors’ meeting in Hong Kong, hoping their March makeover plan will do just the trick.

Meanwhile, Evergrande had about $20b in international bonds and is now offering investors notes tied to their Hong Kong-listed buddies. It’s like a real-life soap opera, and the plot has yet to thicken.

Incidents like this only fan the flames of concerns regarding a slowdown in the property sector, one of China’s most vital economic activities. And this type of upheaval has the potential to cascade into other sectors, as well. This just so happens to occur during a pivotal point in which Beijing is struggling with deflation, weak exports, and souring youth unemployment.

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“Value stocks are about as exciting as watching grass grow, but have you ever noticed just how much your grass grows in a week?”

– Christopher Browne

$100 billion – This is how much U.S. solar and storage companies have announced via private sector investments due to the Inflation Reduction Act. While solar and storage continue surging, over 17 times its current manufacturing capacity across modules, cells, wafers, ingots, and inverters is projected by 2026.

Tesla (NASDAQ:TSLA): Tesla supplier Chinese battery giant CATL revealed its latest solution to EV’s charging and range limitations. The new battery that CATL is introducing can add up to 400km of range in just 10 minutes. Mass production is expected by the end of 2023 while shipping is estimated to begin in 2024. Full story

Intel (NASDAQ:INTC): Intel has called off their plan to acquire Israeli chip maker Tower Semiconductor. The company waited 18 months to hear back from the Chinese regulators which gives new insight to the jagged business ties between the U.S. and China. Failing to close the deal has resulted in Intel paying Tower $353 million. Full story

Ford (NYSE:F): Ford hired Apple veteran Peter Stern as new president of Ford Integrated Services. The goal is to build a world-class team to market new customer experiences via the integration of hardware, software, and other services across Ford Blue, Model e, and Ford Pro. Full story

IBM (NYSE:IBM): AI chips and human brains have always been a controversial issue. Yet, IBM recently unveiled an analog AI chip that perhaps mimic a human brain’s synapses. It even performs complex computations in deep neural networks tasks. The company states that the chip can make AI less battery-draining for computers and smartphones. Full story

GM (NYSE:GM): The automotive giant will soon be adding home charging hardware that is capable of bidirectional charging to its Ultiam-based EVs. This will allow new electric vehicles to send power from their batteries to an owner’s home. The rollout starts with the 2024 models and will include Silverado and Blazer EVs. Full story

BlackRock Inc. (NYSE:BLK): BlackRock is forecasting dark skies for the U.S. economy. They say the economy will flatline for a year while high interest rates make their impact and consumers “exhaust their pandemic savings.” They are warning that we are in the wakest period of growth in the post-war era outside the Global Financial Crisis. Full story

5.9K Tech Layoffs Reported in August

Things just aren’t the same these days in the tech market. In fact, it’s better. Nasdaq is up 36% this year, and we are seeing a positive turnaround for major tech businesses.

But what really makes our wallets tingle is the fact that just in January, 353 tech companies were laying off people like crazy..roughly 108K. Yet, this month we only experienced 5.9K layoffs by only 76 companies. If you want to master the mind of a millionaire, then hold on to your tech stocks. 💸

By now it’s clear where you should be putting your money in these days. The recent surge of interest in AI and massive investments pouring into renewable energy sources is no coincidence. We are seeing the beginning of a major explosion in tech innovation, and it’s in today’s future tech stocks where tomorrow’s millionaires will be made.

So, before you go, we’re just curious:

Do YOU currently have any tech stocks in your portfolio?

Reply to this email with YES or NO.

And with that, thank you for reading this issue of Money Mastery, enjoy your summer weekend! Rock on! 🕶️ 🤘⛱️

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