Michael Burry, famed for predicting the 2008 financial crisis, is maintaining his bearish stance despite the S&P 500 hitting record highs, warning that the market rally could still end in a steep sell-off.
"I continue to believe it is possible we are near a major top, and possible a 1987-type fall, but the S&P 500 making new highs likely will bring new money into the market," "The Big Short" investor said in a Tuesday Substack post.
Burry said rising markets and lower volatility encourage volatility-targeting and momentum funds to increase leverage, which can further fuel the market rally.
Despite the rally, Michael Burry said he continues to hold short positions in the iShares Semiconductor ETF (NASDAQ:SOXX), Micron Technology Inc.
(NASDAQ:MU), Nvidia Corp.
