Burry Flags Wall Street's Record-Breaking Calm Streak

Michael Burry, the investor famous for calling the 2008 housing collapse in 'The Big Short', has been warning about the calm in U.S. stocks for months. The calm refers to the fact that there have been 182 consecutive sessions without a broad selloff on the New York Stock Exchange.

This streak is the longest in at least three decades, beating the previous record by nearly 50 trading days. Burry notes that every year over the past three decades has produced at least five such sessions, according to research from BTIG technical strategist Jonathan Krinsky. He believes this calm is not a sign of strength, but rather narrow leadership driven by a small group of AI-linked mega-caps.

Burry holds bearish positions against several of these companies, including Nvidia, Micron Technology, Palantir Technologies, Caterpillar, and Tesla. He argues that large cycles can take months or years to unwind, making borrowed money the real hazard for investors waiting out a potential downturn. 'Avoid the leverage, and one is more likely to avoid the folly,' he wrote in a Substack post.