Warren Buffett may be bracing for a recession – and Michael Burry’s latest big short is a ‘good move,’ says top economist Steve Hanke

• Warren Buffett and Michael Burry may be expecting a market downturn and recession, Steve Hanke says.
• Berkshire Hathaway sold a net $8 billion of stocks and added to its cash pile in the second quarter.
• Burry’s Scion firm placed bets against the S&P 500 and Nasdaq-100 worth a notional $1.6 billion.

Warren Buffett and Michael Burry have rattled financial markets with bearish disclosures this month. Steve Hanke says the Berkshire Hathaway CEO and the investor of “The Big Short” fame are likely preparing for trouble.

Berkshire sold a net $8 billion of stocks and slowed its pace of buybacks last quarter, sparking a 13% rise in its money pile to a near-record $147 billion.