Michael Burry cites historical precedents as the S&P 500 hits record highs, maintaining short positions in major tech and industrial stocks.
Michael Burry, known for his prescient market calls, warned that the S&P 500’s recent surge to record highs could precede a sharp decline reminiscent of the 1987 crash. He maintains short positions in Nvidia, Micron, Tesla, and other major stocks, though most remain profitable.
The S&P 500 climbed 1.9% Tuesday, closing at its first record since June, driven by strong corporate earnings and falling oil prices. The Nasdaq gained 2.7%. Burry highlighted that the index has surged 5% over four days to a new high only three other times in history, citing analysis from BTIG.
Burry noted the rally’s self-reinforcing dynamic, where rising markets and falling volatility force leveraged bets from vol-targeting and momentum funds. He cautioned that such conditions often precede significant pullbacks.