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.
