Aug. 5 at 12:14 AM
Michael Burry, the investor featured in The Big Short, reiterated his bearish outlook despite the market's record rally, warning that U.S. stocks could be nearing a major peak followed by a 1987-style crash. In a Tuesday Substack post, he argued that while new highs may continue attracting investors, the current rally is being fueled by falling volatility, which encourages volatility-targeting funds and momentum strategies to add leverage, increasing the risk of a sharp reversal.
His comments came as the S&P 500 climbed 1.9% to a record close and the Nasdaq Composite gained 2.7%, supported by strong earnings and lower oil prices. Burry also maintained his skepticism toward the AI boom, saying AI infrastructure spending is being driven by financing arrangements that may prove unsustainable.
The investor continues to hold short positions against the iShares Semiconductor ETF, Micron, Nvidia, Applied Materials, Palantir, Tesla, and Caterpillar,
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