Burry Flags Wall Street's Record-Calming Streak

Michael Burry, the investor made famous by 'The Big Short' for calling the 2008 housing collapse, is warning about a prolonged calm in US stocks. The current streak of 182 straight sessions without a broad selloff on the New York Stock Exchange (NYSE) has Burry sounding alarm bells.

The longest such streak in at least three decades, according to BTIG technical strategist Jonathan Krinsky's research, is now raising red flags for Burry. He argues that this prolonged 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 companies, including Nvidia, Micron Technology, Palantir Technologies, Caterpillar, and Tesla. He believes that the AI buildout is comparable to a gold rush, where today's winners could become tomorrow's ghost towns.

The warning follows Burry's earlier comparison of the current market situation to the 1987-style fall. He emphasizes the importance of avoiding leverage, as large cycles can take months or years to unwind, making borrowed money the real hazard for investors waiting one out.