Burry’s still waving the red flag
Michael Burry — the investor who made "The Big Short" a household phrase — says he’s staying bearish even as stocks keep punching through record highs. In a Tuesday Substack post, he said it’s possible the market is near a major top and floated the spooky comparison every finance nerd loves to hate: a 1987-style crash.
Why he thinks the party could get weird
Burry’s argument is basically that the market’s own calm can become fuel for more risk-taking. When volatility stays low and prices keep rising, funds that target volatility and momentum can pile on leverage, which can make the rally even punchier. That’s the financial version of stacking more chairs on a wobbly Jenga tower.
- He says he still holds short positions in Nvidia, Tesla, Micron, Caterpillar, Palantir, Applied Materials, and the iShares Semiconductor ETF.
- He says his bearish bets are still working, except for his Nvidia short.
- He also said he’d bail if the trades turn decisively against him — so this isn’t blind stubbornness, just very expensive conviction.
Why investors care
This isn’t a company-specific bombshell, but it is a reminder that the market can stay frothy longer than your nerves can. If Burry’s right, the AI and semiconductor names that have powered a lot of the rally could be the ones feeling the air pocket first.
Big picture: the warning isn’t that a crash is guaranteed — it’s that when everyone starts assuming the road is clear, that’s often when the potholes show up.