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▲ 'Big Short' Burry / ChatGPT generated image ©
Michael Burry, the investor famous for 'The Big Short,' has strengthened his bearish outlook by extending the expiry dates of his short positions on tech stocks, despite the U.S. stock market's record-high rally. He warned that the current market is close to a major peak and that a sharp decline similar to 1987 could occur.
According to crypto news outlet Finbold on August 5 (local time), Burry announced via Substack on August 4 that he had closed his long position in Microsoft and exited his short position in Oracle. He also repaid his short position in Palantir, which was set in January 2026.
Conversely, he extended the expiry date of his Nvidia short position to June 2027 and his Invesco QQQ Trust ETF short position to February 2027. He is also maintaining short positions on the iShares Semiconductor ETF, Micron, Caterpillar, and Tesla.
Burry's warning came as the S&P 500 index rose 1.9% to close at a record high for the first time since June, and the Nasdaq Composite index surged 2.7%. While strong corporate earnings and falling international oil prices boosted stock prices, Burry argued that the financial funding structure supporting the expansion of artificial intelligence (AI) investments is unsustainable.
He explained that when the market rises amidst declining volatility, volatility-targeting funds increase leverage, and other momentum strategies also increase leveraged investments. While new highs can attract fresh capital and extend the upward trend, it also means that leverage accumulates, making the market vulnerable to shocks. Burry expressed continued confidence in the long-term profitability of his remaining bearish positions, excluding the Nvidia short.
*Disclaimer: This article is for investment reference only and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*
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