Wall Street ridiculed him. And his investors threatened to sue him…
Two years later, he delivered them a $700 million payday.
Michael Burry was one of the most successful hedge fund managers in the early 2000s. But as soon as his fund started to underperform, investors showed up with pitchforks.
One of his largest investors showed up at Burry’s door and demanded his money back. He even threatened to sue.
He couldn’t stand that Burry bet against the housing market, and he was losing money in a bull market.
Burry made this bet after housing prices soared from a decline in lending standards. Requirements like down payments and proof of income became overlooked.
In December 2006, a report estimated 1 in 5 loans would soon default from risky borrowers as conditions worsened.
By 2007, the housing market started to crumble when 25 subprime lenders went under in the first quarter.
After years of pretending the housing market was rock solid, Wall Street finally acknowledged there was a problem.
The reason for the sudden change is simple… Wall Street was getting in on the trade itself.
The moment Goldman Sachs went from betting on subprime mortgages to betting against them, the market flipped.
That’s when the floodgates opened, and Burry’s bet finally paid off.
And that’s when Morgan Stanley called up Burry and asked if it could buy his short position from him.
In the end, Burry made $100 million for himself and $700 million for his investors, according to Investopedia.
As for Wall Street giants like Goldman Sachs, Deutsche Bank, and Morgan Stanley – they too made a profit.
The New York Times reported these firms sold mortgage loans to pension funds and insurance companies as if they were solid investments… Then they bet against them.
If there’s one thing you should take from this story, it’s that Wall Street won’t acknowledge a massive shift in the markets until it’s positioned to profit from it.
I’m telling you this because we face a similar moneymaking opportunity today. And if you position yourself right now, you can profit from Wall Street’s greed.
Watch What They Do, Not What They Say
As regular readers know, Wall Street has bashed crypto for years… But now it’s starting to embrace it.
Earlier this year, JPMorgan CEO Jamie Dimon called bitcoin a “hyped-up fraud.” Yet his company is testing how blockchain technology can benefit existing systems.
In 2020, Goldman Sachs bashed crypto, saying it’s “not an asset class.” Since then, Reuters reports the company is looking to invest in the space.
In 2017, BlackRock CEO Larry Fink called bitcoin an “index of money laundering.” Now he says it could “revolutionize finance.”
Today, the Wall Street giants are quietly laying the infrastructure to profit from what will be a multi-trillion-dollar industry.
There’s no better example of this than BlackRock’s bitcoin exchange-traded fund (ETF) filing on June 15.
BlackRock manages more money than anyone else on the planet, close to $10 trillion.
Over the years, BlackRock has filed for roughly 550 funds. And it has only been rejected once, according to Bloomberg.
(BlackRock was denied an ETF in 2014 because it wanted to withhold information on the holdings from investors for months. This would prevent it from being front-run by others.)
So the chance of a spot bitcoin ETF finally coming to market has never been higher.
The reason is simple – more money to line the pockets of Wall Street firms.
When the SPDR Gold Trust (GLD) became the first commodity ETF in 2004, did Wall Street stop there?
No, it created dozens more ETFs to give investors access to other commodities like oil, natural gas, copper, silver, and more.
Today, there’s 95 commodity ETFs that trade in the U.S. with over $133 billion in assets under management, according to ETF.com.
Wall Street generates over $1 billion each year from commodity ETFs. That’s a handsome fee for Wall Street giving investors easy access to an asset.
The same will be true for crypto. Wall Street can’t resist the profit opportunity it faces with crypto today.
And a spot bitcoin ETF could come sooner than you think.
Why You Should Position Yourself Today
The Securities and Exchange Commission (SEC) has until September 2 to either approve, deny, or delay its decision on BlackRock’s ETF.
Now, the SEC will likely choose to delay. But just in case it approves it, you don’t want to wait to position yourself until after the ETF filing goes through, and money starts flowing in.
Doing so will prove to be a costly mistake. Once the price of bitcoin starts moving, look out.
Here’s what Daily editor Teeka Tiwari said last month about the impact that a spot bitcoin ETF can have on the price of bitcoin:
When the big boys eventually come in, I expect bitcoin could hit $100,000 in the blink of an eye. That’s a 246% move higher from here.
Ethereum will also explode higher in value to at least $7,500. That’s another no-brainer 309% gain.
If you’re waiting for a big dip, you might not get it. If you have cash on the sidelines and are looking for an opportunity to own more bitcoin and Ethereum, now is your chance.
If Teeka is right – and our research backs him up – bitcoin and Ethereum will prove to be two of the best assets to own over the next year.
But remember, Wall Street isn’t going to tell you crypto is a good investment until it’s positioned to profit from it first.
It’s quietly building tollbooths into the crypto markets as we speak. Once it’s finished, it’ll tell you it’s a great asset to own.
That’s when the floodgates will open, and our bets will pay off.
But you can’t wait until it’s obvious to position yourself. By then, you’ll have missed most of the profits.
The best way to position yourself today is by owning some bitcoin and Ethereum.
These are the lowest-risk assets in the space that’ll ensure you profit from this industry’s growth.
Regards,
Houston Molnar
Analyst, Palm Beach Daily
P.S. Last week, Teeka Tiwari held a special strategy session called The #1 Coin for the AI Boom.
It’s all predicated on an event that’s guaranteed to happen on August 23 at 4 p.m. ET that he believes will send the AI trend into a parabolic move higher.
It’s a project that’s solving the main problem for the advancement of AI – the need for more computing power.
And best of all, right now this AI coin trades for around $1. That means you can get in on the ground floor.
Based on our research, this project has at least 100x more upside potential than popular AI stocks at current levels.