Michael Burry and John Paulson. Two famous investors, massive investors, that hit it rich but also made a very impressive call with the housing market crash back during the great financial crisis. They’re now pivoting into gold. This real estate cycle is playing out absolutely perfectly. It’s one of the lessons I teach in my course, specifically in the crash course because you can actually tell when gold is starting to run and when real estate is going to top or when real estate bottom is based off of gold because gold is affected by interest rates and by consumer and investor sentiment.

Actually more investor because consumers don’t understand gold, but just like I made a call three years ago that everyone in this nation is about to become an expert in inflation. I’m telling you right now, in the next year, everyone is about to become an expert in gold and you couldn’t call this any better. So I’m going to go over this story on a business insider, but it’s really important that people understand this. Now, something else that my students understand and know about me that nobody else on YouTube knows that I don’t put everything out on the channel.

And the reason why is because I’ve got a bunch of copycatters, a bunch of Yahoo’s out there that don’t have original thought or understanding because they never were investors. Please understand that. I hope you understand that. I hope you understand the bios of these people out there doing financial stuff and they were never investors. Matter of fact, most of them just bought their first house. I know it sounds crazy. Actually, most of them don’t even own a home and they don’t even understand the fundamentals of real estate, but they will go on and on and on about it.

Or sometimes they just brag about how they missed it and they lost everything during the great financial crisis. So I’m doing two things. To everyone that took the crash course, something big has happened. It was one of my calls. I did two videos on this channel about it, but it’s exploding massively. It’s in the mortgage industry. And so I’m having a live teaching for everyone that took the real estate crash course. It has to do with that and something else that’s going on with Zillow and Redfin. So watch for an email today or tomorrow about that AMA.

It’s going to be Wednesday. It’s going to be live, a live teaching for everyone. If you want the crash course and you want to start learning about real estate cycles and you want to be prepared for this and not scared and be crushing it. I’ll put some 70% off links down below or you can go to housingcrashninja.com. It says housingcrashninja.com. So here’s the story. Oh, let me ask you this real quick. Let’s take a poll. Type one, if you own gold and you are watching the gold to real estate ratio, absolutely crush it right now. On a percentage basis, the Federal Reserve is telling the truth.

Again, a bunch of these yahoos on social media. They like to listen to the National Association of Realtors, to Zillow, to Redfin, to all the liars, the people that make money based off is real estate selling or not. They’re not paying attention to real data coming out of the Federal Reserve. And look at everybody right now. They are watching their gold go up and the real estate numbers go down. And this is exciting because I am going to show people how to move in. Love it. I don’t care if all the pros on CNBC, Fox Business or all the talking heads in social media think I’m smart.

I don’t care. You know who I care about? Thinking I’m smart and me changing their perception and showing them how to make money? My students. End of story. All right, cool. So here we go. Michael Burry and John Paulson hit the jackpot when they called the housing crash. Now they’re betting on gold. Why? Because they know. And just you know, what the information I would tell you is historical. Even though the news story just came out this morning, it’s historical data because people like John Paulson and Michael Burry, they don’t come running out and they go, hey, I’m buying gold.

Why? Why wouldn’t they tell you they’re buying gold? It’s because a lot of people would go and follow their lead because they’re not investors themselves. They’re just merely speculators and they’ll do anything wealthy people tell them or, you know, are doing. And so they don’t want a race into these metals. Now they’re going to talk about specific stocks. And I know some of the owners of these companies and I do not own any of these stocks. OK, I own different precious metal stocks. But quite frankly, I have to tell you, mining companies are in a depression right now.

The public has not moved into mining stocks. You’re watching gold and silver and copper on an absolute terror. As a matter of fact, guys, can you put down the price of silver? I’m just curious if it hit 32 bucks last night when Asia opened up. So I haven’t looked yet. So you’re watching the metals take off. The stocks, the precious metal mining stocks are lagging behind. But again, this is historical data because it comes out. The news, the media figures it out based off of filing reports, either an annual report or a 10K or a 10Q, whatever.

It’s historical. It shows what they did a little while ago. Looks like silver is $31.78. All right, cool. So you have these two amazing investors that think about cycles, just like I do. This is, you know, I was watching Michael Burry in real time as I was liquidating my real estate. I was reading about all the mocking that was going on about him and the other guys from the big short. I watched in real time. But I also was watching the Wolf of Wall Street Jordan in real time when he was doing all of his craziness when I was investing during the dot com bubble.

So it says here, it turns out that Michael Burry isn’t only a metalhead when it comes to music. The investor of the big short fame purchased about 441,000 units of Sprott physical gold trust last quarter. The trust holds virtually all of its assets in physical gold bullion. Burry, Scion Asset Management, his company revealed its first quarter holdings in a regulatory filing this week. Again, this is historical data. So they made this investment back in the beginning of the first quarter, okay, when gold was cheaper. All right. The gold bet was worth $7.6 million at the end of March, ranking it as Scion’s fifth largest position with a 7.4% weighting in the firm’s $103 million US stock portfolio.

So those of you that understand portfolio diversification, you understand that 7.3% is a solid, solid number. And I have a feeling, just a feeling, that you’re going to see quarter two’s numbers, they’re going to add to that position. And I would dare bet I’m just going to, just going to guess it’s going to be over 10%. Type three, if you agree with that. Just curious or type four, if you think, no, this is the only time Michael Burry’s Scion Asset Management company is going to, oh, the liberal that I ran into yesterday is here. It’s holding the stick.

All right, standby. Well, that’s a whole other video. All right. It says, if the wager remains intact, it was valued at $8.1 million as of Friday per Sprott’s bullion calculator. So he’s already making money. Weird. Buying gold is a surprising move from Burry, a value investor known for sniffing out dirt cheap stocks. Or is that because he understands that stock, the stock market’s topping, it’s only been run up based on inflation and FOMO. He says he also bet against high fliers like Elon Musk Tesla, Cathie Wood’s Ark Innovation ETF and Microchip ETF that counts Nvidia as its top holding.

Burry shot to fame for predicting and profiting from the collapse of the mid 2000s housing bubble. The saga was chronicled in the book and the movie The Big Short. I’m not joking. I can’t wait to do this live teaching on Wednesday because I just watched two knuckleheads talk about how it’s different this time and it’s not. And I’m going to show you guys that. And but I’m not going to show it on YouTube because I’ve got a bunch of people watching and I watch it all the time. I’ll be the first out with an innovative thought or an idea and boom, boom, boom.

They got all these guys making the videos about it and like, hmm. All right. John Paulson. Now let’s talk about another famous investor moving out of he did the real estate too. Now he’s moving into gold, right? John Paulson made his name with a similar wager immortalized in a book titled The Greatest Trade Ever. Like Burry and Paulson and company’s chief appears to be bullish on gold and other precious metals. Paulson’s firm accounted angle gold, Ashanti, all these different minds. Who cares? Back in 2021, the veteran investor predicted stubborn inflation would force the Federal Reserve to hike interest rates, spurring investors to dump their cash and other assets for gold.

He argued the double whammy of surging demand and limited supply would cause a yellow metals price to soar. Let me also bring up, let’s talk about inflation and how it pertains to the gold trade because of Federal Reserve interest rate decisions. Now, a lot of people on social media or the mainstream media will not tell you. They understand the separation of the bond market right now and the Federal Reserve rates. The Federal Reserve rates right now have very little pulling on these unless they go super low, right? Because people are afraid to put their money out, put their money at risk for a long term trade, right? Holding a bond to maturity because they know that in order for the Federal Reserve to get on top of inflation, they actually have to raise rates even more than they are right now, okay? So they don’t want to put this out.

So they are demanding higher rates. That’s why that rate, that 10-year bond is staying real solid around the 4 to 4.6 range. When you couple the fact that tons of countries around the world are no longer wanting our bonds, as a matter of fact, they’re becoming net sellers of bonds. I cover this all the time, right? It’s not news. However, still, there’s every once in a while you get a comment from someone saying, you know, I’m producing fear. No, this is really, fear is China and Russia, they don’t want to buy our bonds anymore.

They’re fearful that we’re going to never pay back their money. That’s the truth. It comes out in the news, right? Well, these people won’t tell you that what happens with these interest rates is that if the Fed and gold, the gold price, see, gold keeps trading up because every time the rate stays higher for longer, the gold trader is going, oh, it’s any day now. We’re that much closer. We’re always that much closer to a rate drop. But what if rates go up? Well, let me explain what’s going to happen. This is the key that very few people fail to understand.

In the beginning of a rate increase, gold drops a little bit, like for the first few days. But then what happens is because they’re going, oh, great, you know, the Fed’s raising rates, they’re not lowering rates and we want them to lower because then that makes more money printing and that’s good for gold. It’s actually not true. See, what happens the first few days, they drop the rate, gold or raise the rate, gold price drops, then traders figure out, oh, crap, this is unsustainable. So that means people are going to have harder times borrowing money and lending money and all this kind of stuff.

And like, oh, man, gold trades back on. And they go, and then we’re that much closer to when they lower it. To see gold at this price right now is amazing. Yet we’re in a time like the late 70s when gold started, click, click, click, click, click, click, click, click, like that roller coaster is clicking up, clicking up, clicking up. And we haven’t even seen that parabolic blow off top. Now, this is going to happen at the same time that real estate comes tanking down. And so what you’re going to see, the trade of the century, there’s actually two trades of the century, I believe it’ll be Bitcoin for silver and it will be gold for real estate.

They’re almost going to happen simultaneously. Now, good news to all the YouTubers watching, you can go out and make videos about this. If you want to be a part of this, then all you got to do is ride the waves, ride the cycles. Watch what these famous people are doing. Type 10 if you own gold, type 11 if you own silver, and type both if you got both. I’m just curious because the smart people are moving into gold. They’re on the sidelines with real estate and they’re absolutely ready to crush it. And the people that are on the sidelines, they’re studying the crap out of these cycles.

That’s how you make money. So look, if you want to make money, I’ll put some 70% off links to the real estate crash course. It should be the real estate cycles course because that’s what it is. And teaching people how to become cycles investors in real estate because you’re going to need to know when to move from gold into real estate. And that’s the big problem. People don’t know how to use, sell their gold to buy the real estate, which stuff to buy. And that’s what I’m going to do. It’s housingcrashninja.com if you want to check it out for everyone watching on TV.

Everyone that owns the course live training is on Wednesday night. Keep an eye out for it. And if you can’t make it, I’m going to record it and send it back out to all of my students. So this is very important. So I want everyone that is a student to understand this and get this lesson. Hopefully you guys have a great day. The Economic Ninja is out. [tr:trw].

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