This article was originally published by Austin Litman on Proofofwork.ca
The movie The Big Short is based on a guy named Michael Burry, who runs a hedge fund called Scion Asset Management.
Scion Asset Management owns 6 stocks right now. 2 are prison companies, 1 is a defence company, and 3 are media companies. Over 50% of the portfolio is the 2 prison companies.
Why? Because Michael is betting on the crime rate to continue to go up. In Chicago, Motor Vehicle theft is up 122% from 2019, and Grand Larceny and Burglary are up over 30% each in New York. Almost every other crime statistic is going up.
So Michael expects more people to go broke from this recession and turn to crime, driving up demand for new prisons.
