When it comes to doing well in a recession, few names come to mind quicker than that of ‘The Big Short’ investor Michael Burry.
Indeed, Burry proved his ability to correctly judge the weaknesses of the stock market and of the economy at a time when much of the world was caught by surprise in what would become known as the Great Recession.
Though the hedge fund manager has not managed a success of the magnitude of his ‘Big Short’ in the last 16 years and has even taken some big losses with, for example, his 2023 short position against the semiconductor industry, he remains both a respected name and a mostly successful trader well into 2024.
Picks for you
Given Burry’s reputation and the grim bloodbath that is, at the time of publication, affecting the global stock and crypto markets alike, Finbold decided to examine the famous investor’s portfolio and find the best assets to buy to weather the emerging storm.
HCA Healthcare (NYSE: HCA)
Through much of 2024, HCA Healthcare (NYSE: HCA) has been one of the best-performing Michael Burry stocks and one of the biggest holdings in his portfolio. Indeed, the accolade of a strong pick is likely to persist even should a U.S. recession develop out of the ongoing bloodbath as HCA operates in a traditionally defensive sector less prone to cyclical changes.
Indeed, no matter the situation in the market or the economy, healthcare stocks such as HCA tend to do relatively well due to the simple fact that people can’t choose to not get sick or injured based on whether there is a recession or not.
Nonetheless, even investments such as HCA Healthcare are likely to see some downward movement whenever there is a wider drop, as evidenced by the shares falling 1.86% during Friday trading to its latest closing price of $356.36. Still, it is worth pointing out that the stock remains 25.18% in the green since the start of 2024.
Sprott Physical Gold Trust (NYSEARCA: PHYS)
While gold is not – according to the latest available 13-f – a direct Michael Burry asset, the famous investor has a substantial investment in the commodity through his ownership of 440,729 shares of Sprott Physical Gold Trust (NYSEARCA: PHYS).
‘The Big Short’ trader’s decision to gain exposure to the precious metal appears fairly natural given both gold’s performance since the start of 2024 – the commodity is up 17.54% in the year-to-date (YTD) chart – and its reputation as a safe haven for wealth in troubled times.
Indeed, much like gold itself, PHYS has performed generally well since January 2 and is 19.47% in the green YTD with a press time price of $18.96.
Still, much like HCA and, indeed, gold itself, Sprott Physical Gold Trust did not entirely evade the Friday bloodbath, as it declined 0.99% on the day. Additionally, some turbulence may be ahead for gold as it is likely to face upward pressure from investors seeking the safety of the commodity, but also selling pressure due to its links to the technology sector.
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Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.
