'Big Short' Legend Michael Burry Bets Big On Lipstick Index: Is He Bracing For A Recession?

Benzinga

Michael Burry’s Scion Asset Management doubled its stake in Estée Lauder to 200,000 shares in the first quarter, according to an SEC filing. The move may signal confidence in the “Lipstick Index,” a theory suggesting consumers turn to affordable luxuries like cosmetics during economic downturns. Burry also exited all long positions in Chinese tech stocks and opened shorts in Alibaba, JD.com, and Trip.com. Burry rose to fame for predicting the 2008 housing crash and continues to make contrarian bets. The Lipstick Index suggests that during economic downturns, consumers replace expensive items with affordable luxuries like cosmetics to gain small psychological comforts.

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00:00It's Benzinga bringing Wall Street to Main Street.

00:02Michael Burry's Scion Asset Management doubled its stake in Estee Lauder to 200,000 shares

00:06in the first quarter, according to SEC filing.

00:09The move made a single confidence in the Lipstick Index.

00:12The theory suggested consumers turn to affordable luxuries like cosmetics during economic downturns.

00:17Burry also exited all-long positions in Chinese tech stocks and opened shorts in Alibaba,

00:22JD.com, and Trip.com.

00:24Burry rose to fame to predict the 2008 housing crash and continues to make contrarian bets.

00:28Lipstick Index suggests that during economic downturns, consumers replace expensive items

00:33with affordable luxuries like cosmetics to gain small psychological comforts.

00:38For all things money, visit Benzinga.com slash GSTV.

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