Michael Burry Remains Bearish Amid New Stock Market Highs

Investor Michael Burry is holding onto his bearish bets, including short positions on major technology stocks, even as the S&P 500 and other U.S. indices achieve new record levels. Burry, known for his prescient call on the 2008 housing crisis, expressed concerns about a potential "1987-type fall" in a recent public statement, suggesting that the current market rally, driven by momentum and falling volatility, could be setting up for a sharp reversal. His analysis suggests that a VIX index near 16 creates a feedback loop where falling volatility attracts leveraged trading strategies, potentially overextending the market.

Burry's short book includes positions against NVIDIA, Tesla, Palantir, Micron Technology, and Caterpillar, among others. While some of these trades are reportedly profitable, his bet against NVIDIA remains underwater, a position he has chosen not to close. These disclosures come via his paid Substack newsletter, as Scion Asset Management was deregistered with the SEC in November 2025. The broader market saw the S&P 500 rise 1.79% on Tuesday, August 4, 2026, with the Nasdaq and Dow also posting significant gains, highlighting the divergence between market performance and Burry's outlook.