The popular movie, The Big Short, dramatized how hedge fund manager Michael Burry made a profit of $2.69 billion by anticipating the collapse of the US housing market in 2007. Burry created a credit default swap market when he realized that the vast number of high risk subprime loans made the housing market unstable. There is a lot of detail in the movie but the point which interests us here is how do you pick an investment to short? This thought came to mind as we consider and re-consider the aging bull market, the risk of a trade war with […]