Burry Deleted this Chart on the Banks .. Here's What He Meant 🤔
Banks across the globe are on the verge of an all-out collapse. Silicon Valley Bank has gone under and is in FDIC receivership. Signature Bank is gonzo. And now Credit Suisse, a major player in the world of finance, is in the process of getting bought out for pennies on the dollar. We have a major Fed meeting tomorrow and if they don’t cut rates there will be more pain ahead.
Interestingly enough, Michael Burry tweeted the following cryptic tweet, seconds later deleting it.
One day later, the banks crashed again. First Republic Bank fell 30%, Western Alliance Bancorporation fell 6%. Yesterday he then tweeted this:
The chart is a haunting image at which banks are likely to go under and what banks will survive. The chart is a blueprint for investors wanting to invest in the banking sector and provides a type of financial map for which banks are the less risky and the ones that have the most upside.
Banks are compelling here with most of them trading significantly below book value. Should any change in policy occur (high probability in our opinion) bank stocks should do extremely well.
In this article we break down what this chart that Burry posted means, which banks offer the most upside, and how investors are playing this extreme volatility in the banking sector to generate attractive returns.
Hope you enjoy… (Hint, one of the favorable banks is CFG which is down 20% post banking crisis)
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